Cymbal E-Motors is a fast-growing start-up firm that manufactures electric motors for bicycles. The following income statement available for April: Sales revenue (910 units @ $2,300 per unit) Leas Manufacturing costs Variable costs Depreciation (fixed) Marketing and administrative costs Fixed costs (cash) Depreciation (fixed) Total costs Operating profits $ 2,093,000 65,200 65,000 130,000 73,000 $333,200 $ 1,759,800
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- Integrated Excel: Preparing a Contribution Format Income Statement Using the High-Low Method Jay Corporation has provided data from a two-year period to aid in planning. The Controller has asked you to prepare a contribution format income statement. Budgeted information for Quarter 1 of 2024: Sales in units Sales price per unit After analyzing expenses, the company has determined the following cost patterns. Cost of Goods Sold (per unit) Sales Commissions (per dollar of sales). Administrative Salaries (per quarter) Rent Expense (per quarter) Depreciation Expense (per quarter) Shipping has been determined to be a mixed cost with the following total costs and units: 2022 Quarter 1 Quarter 2 Quarter 3 Quarter 4 2023 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Cost $ 67,000 $ 94,000 $ 89,800 $ 92,600 $ 72,500 $80,000 $ 84,000 $ 100,000 17,000 $ 48.00 Units 12,500 21,000 13,800 20,000 13,700 14,000 14,300 22,500 $29.00 9.50€ $ 45,000 $ 27,000 $ 36,000 Required: Use the data to answer the…Aero Travel Trailer Manufacturing is working on budgeting utility cost. The controller has decided that utilities are a function of the hours worked during the month. The following information is available and representative of the company’s utility costs: - Hours worked Utility cost incurred Low point 1,300 $ 903 High point 1,680 1,074 If 1,425 hours are worked in a month, total utility cost (rounded to the nearest dollar) using the high-low method should be Group of answer choices $947. $959. $954. $976.Howard Cooper, the president of Finch Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 1: Standard rate and variable costs Service rate per hour Labor cost Overhead cost Selling, general, and administrative cost. Expected fixed costs Facility maintenance Selling, general, and administrative Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 28,000 hours of services in Year 1. b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Finch charges customers $57 per hour, the firm can achieve 31,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same consultant also suggests that if the firm…
- Howard Cooper, the president of Campbell Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 3. Standard rate and variable costs Service rate per hour $ 85.00 Labor cost 37.00 Overhead cost 7.10 Selling, general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative 3.80 $522,000 142,000 Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 45,000 hours of services in Year 3. b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Campbell charges customers $80 per hour, the firm can achieve 50,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same…As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Sarasota Company for the month of October. Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable: Fixed expenses SARASOTA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Rent Sales salaries Office salaries Depreciation-autos (sales staff) Total fixed Total expenses Budget 8,640 $2,592 864 3,888 1,728 9,072 1,620 1,296 864 540 4,320 $13,392 $2,808 Actual 10,800 2.160 Favorable A 918 4,428 1.512 9.666 1,620 1,296 864 540 Difference Favorable Unfavorable 4,320 $13.986 Neither Favorable nor Unfavorable $216 Unfavorable 54 Unfavorable 540 Unfavorable 216 Favorable. 594 Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable…Using account analysis, Pymble Co. wishes to estimate employees' automobile expenses as a function of miles driven. Costs for the past quarter, during which 58,000 miles were driven, are classified as follows: Item Classification Cost $3,200 11,200 3,900 1,800 2,100 Fuel Variable Fixed Fixed Variable Fixed Depreciation Insurance Maintenance Parking Predict the total cost for the coming quarter for which the employees' auto travel budget would be 65,000 miles: $
- Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month 1. Margin of safety (in dollars) 2. Margin of safety percentage $28 $14 $ 12,040 1,010 Required: 1. What is the company's margin of safety? (Do not round intermediate calculations.) 2. What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).) %Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month’s budget appear below: Selling price per unit $ 23 Variable expense per unit $ 14 Fixed expense per month $ 7,830 Unit sales per month 1,020 Can you please help me solve the following items: A. What is the company’s margin of safety? (Do not round intermediate calculations.) B. What is the company’s margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).)A. State and explain two objectives of business in preparing budget. Provide example where necessary. B. Kinetic Manufacturing mahufactures small robots that function as a timekeeper. It expects to produce 4,000 units each month. Budgeted variable manufacturing costs per unit are direct materials RM7, direct labour RM5 and overhead RM10. Monthly budgeted fixed manufacturing overhead costs are RM4,500 for depreciation and RM3,000 for rental. In the current month, Kinetic Manufacturing produced 4,100 units of small robots and incurred the following costs: direct material RM28,290, direct labour RM22,000, variable overhead RM44,000, depreciation RM4,500 and rental RM3,000. Required: Prepare a performance report using flexible budget for 4,100 units of output. For each expense, determine the type of variance; favourable or unfavourable. Based on the performance report prepare in (i), discuss the performance of Kinetic Manufacturing for the current month.
- XYZ Co. makes and sells product AB. The company provides the following data about its selling and administrative expenses budget: Monthly Fixed Cost Variable cost per unit sold Sales Commissions P0.75 Shipping P1.30 Advertising P30,000 P0.20 Executive salaries P25,000 Depreciation P15,000 Other expenses P7,000 All expenses except depreciation of office equipment are paid in cash in the month they are incurred. The company has budgeted to sell 18,000 units of product AB in August 2021. Questions: 1. How much is the total budgeted selling and administrative expenses for August 2021? 2. Assuming the cash disbursements for selling and administrative expenses total P116,000, then how many units of product AB does the company plan to sell?Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 23 $ 18 $ 4,350 1,020 Required: 1. What is the company's margin of safety? Note: Do not round intermediate calculations. 1. Margin of safety (in dollars) 2. Margin of safety percentage 2. What is the company's margin of safety as a percentage of its sales? Note: Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34). %Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 30 $ 12 $ 15,840 1,030 Required: 1. What is the company's margin of safety? Note: Do not round Intermediate calculations. 2. What is the company's margin of safety as a percentage of its sales? Note: Round your percentage answer to 2 decimal places (1.e. .1234 should be entered as 12.34). 1. Margin of safety (in dollars) 2. Margin of safety percentage %6