Exercise 7-5 Manufacturing Overhead Budget [LO7-6] The direct labor budget of Yu
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Question
Exercise 7-5 Manufacturing Overhead Budget [LO7-6]
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:
The company’s variable manufacturing overhead rate is $2.25 per direct labor-hour and the company’s fixed manufacturing overhead is $50,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $12,500 per quarter.
Complete the company’s manufacturing overhead budget for the upcoming fiscal year.
Compute the company's manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.
please show the work
Exercise 7-6 Selling and Administrative Expense Budget [LO7-7]
The company’s variable selling and administrative expense per unit is $3.20. Fixed selling and administrative expenses include advertising expenses of $10,000 per quarter, executive salaries of $53,000 per quarter, and depreciation of $32,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $9,200 will be paid in the second quarter.
Prepare the company’s selling and administrative expense budget for the upcoming fiscal year. (Round "Variable cost" answers to 2 decimal places.)
Exercise 7-7 Cash Budget [LO7-8]
Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows:
The company’s beginning cash balance for the upcoming fiscal year will be $28,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded.
Complete the company's cash budget for the upcoming fiscal year. (Cash deficiencies, disbursements, repayments, and interest should be indicated by a minus sign.)
Exercise 7-8 Budgeted Income Statement [LO7-9]
Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process:
Prepare the company’s budgeted income statement using an absorption income statement format.
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:
Explanation / Answer
Exercise 7-5 Manufacturing Overhead Budget
1. Company’s manufacturing overhead budget for the upcoming fiscal year
For calculation of cash distribution on expences depreciation will not be consideres as it is non cash expeces
2. Company's manufacturing overhead rate (including both variable and fixed manufacturing overhead)
Variable manufacturing overhead = 74,475
(+) Fixed manufacturing overhead = 200,000
Total manufacturing overhead = 274,475
Exercise 7-6 Selling and Administrative Expense Budget
Company’s selling and administrative expense budget
Exercise 7-7 Cash Budget
Company's cash budget
Exercise 7-8 Budgeted Income Statement
Yuvwell Corporation Manufacturing Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Variable manufacturing overhead 18,450 18,675 19,350 18,000 74,475 Fixed manufacturing overhead 50,000 50,000 50,000 50,000 2,00,000 Total manufacturing overhead 68,450 68,675 69,350 68,000 2,74,475 Less depreciation -12500 -12500 -12500 -12500 -50000 Cash disbursements for manufacturing overhead 55,950 56,175 56,850 55,500 2,24,475Related Questions
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