Prepare mastic static budget-prepare flexible budget

Assignment Help Managerial Accounting
Reference no: EM1347679

A company makes a product out of metal. They employ two pounds of metal that costs them $20 per pound. They pay their employees $25 an hour and it takes average of 1.3 hours for them to make the final product. They expect to sell 8,000 units. They also expect to incur $40,000 in fixed costs. Prepare the mastic static budget.

If they expect to sell 1,000 units in jan, 800 in feb. 900 in mar, 500 in april, 600 in may, 700 in jun, 400 in july and they have a policy of producing 20% in advance and buying 10% of the materials in advance. How much metal should they buy in march?

During the year the company sold 10,000 units for $760,000. They also paid $487500 for 25,000 pounds of metal. They also paid their employees $337,500 for 12,500 hours of work. In addition they paid $41,000 in fixed costs. Prepare the flexible budget and prepare a variance analysis.

Reference no: EM1347679

Questions Cloud

Find out the height of the building : A 100 g ball on a 60 cm long string is swung in a vertical circle whose center is 200 cm above the floor. The string suddenly breaks while it is parallel to the ground and the ball is moving upward. The ball reaches a height 600 cm above the floor..
Give the nature and location of the image : The resistor is connected in series with total set of lightbulbs. What is the value of the resistance? What is the power loss in the resistor.
Channel along which bits transfer circuitry of computer : Within circuitry of computer, each channel along which bits transfer, called a(n) ____, permits the several devices both inside and attached to system unit to communicate with each other.
Technological advances contradict law of diminishing : Do such technological advances contradict the law of diminishing marginal returns
Prepare mastic static budget-prepare flexible budget : A company makes a product out of metal. They employ two pounds of metal that costs them $20 per pound. They pay their employees $25 an hour and it takes average of 1.3 hours for them to make the final product.
Find the amount for investment : Dustin is planning an investment that will pay 3200 dollar a year for eight years, starting one year from today which is normal.
Define the speed of the disk : A 175 watt motor is used to lift a 129 kg container to a height of 7m. How much time does it take to lift  container with the motor.
Funding budget shortfalls : Funding budget shortfalls As part of your personal budgeting process, you have determined that in each of the next 5 years you will have budget shortfalls.
Find the energy of the incident electron : A steel wire of mass 0.400kg and length 0.640m supports a 102 kg block. The wire is struck exactly at its midpoint causing a small displacement. How long does it take the peak of this displacement to reach the top of the wire.

Reviews

Write a Review

 

Managerial Accounting Questions & Answers

  Knowledge-activity based costing

City of Joseph Commercial Bank hired consultants to compute the costs of three products: checking accounts, personal loans, and the Gold visa card. The consultant identified the following activities, costs and activity drivers (annual data):

  Developing unit costs using normal costing

The Coastal Landscaping and Snow Removal company employs normal costing to assign overhead costs to firm's various jobs. Labor is charged to jobs at $25 per hour and for upcoming winter session, overhead is estimated at $200,000 for $10,000 hours ..

  Discussion of normal costing system

When using a normal costing system, manufacturing overhead is applied using the ______________ manufacturing overhead rate and the _______________ quantity of allocation base.

  Product liability-regulatory agencies

Pick a product you are familiar with or interested in. What product liability issues arise for that product? What measures can management take to prevent these product liability problems from arising? How can they minimize legal risk involving the..

  Question on segment margin

Martin Company is a two-division firm and has following information available for this year:

  Evaluate direct materials and conversion costs

What are the corresponding units for direct materials and conversion costs, correspondingly, for June?

  Use of job order and process cost system

Discuss the factors that a company must consider when deciding whether to use a job order or a process cost system. What might be the consequences to a company if they make the wrong choice?

  Basics of cost-volume-profit

Feather Friends, Inc., distributes the high-quality wooden birdhouse which sells for $20 for each unit. Variable costs are $8 per unit, and fixed costs total $180,000 per year.

  Discussion job analysis

Describe how a job analysis increases productivity, aids in job description creation, and guides employee team formation.

  Budget constraints in two period model

Explain how the budget constraint of househould in two-period model is affected by each of the following changes. In each case, do you think the household is better off or worst off or is the answer ambiguous?

  Determining cvp analysis

JungleGym, a best-selling toy has a selling price of $15. If the contribution margin ratio is 40% and if the fixed costs are $60,000, how many JungleGyms must the company sell to realize a profit of $450,000?

  Describing cost-volume-profit

Disk City, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,740,000 based on a sales volume of 270,000 video disks.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd