1. (TCO F) Sandler Corporation bases its predetermined overhead rate on the estimated machine hours
for the upcoming year. Data for the upcoming year
... [Show More] appear below.
Estimated machine hours 73,000
Estimated variable manufacturing overhead $3.49 per machine hour
Estimated total fixed manufacturing overhead $838,770
Required:
Compute the company's predetermined overhead rate. (Points : 25)
Answer
Computer Overhead Rate
Fixed Manuf OH 838700
Var Manuf OH 252580 (3.46x73000)
Per Direct Lab H 3.46
Direct Lab Hours 73000
Est Manuf OH 1091280 (838700+252580)
Direct Lab Hours 73000
OH Rate 14.95 (1091280/73000)
2. (TCO C) Enciso Corporation is preparing its cash budget for November. The budgeted beginning cash
balance is $31,000. Budgeted cash receipts total $135,000 and budgeted cash disbursements total
$141,000. The desired ending cash balance is $50,000. The company can borrow up to $100,000 at any
time from a local bank, with interest not due until the following month.
Required:
Prepare the company's cash budget for November in good form. (Points : 25)
Answer
Cash Budget for November
Beginning Cash balance $31,000.00
Cash Receipts $135,000.00
Total Cash Available $166,000.00 (31000+135000)
Less: Cash Disbursement $141,000.00
Excess Cash $25,000.00 (166000-141000)
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Borrow $25,000.00 (50000-25000)
Cash Ending $50,000.00
1. (TCO C) The following overhead data are for a department of a large company.
Actual Costs
Incurred
Static
Budget
Activity level (in units) 500 450
Variable costs:
Indirect materials $5,950 $5,382
Electricity $1,112 $1,008
Fixed costs:
Administration $2,770 $2,800
Rent $5,120 $5,100
Required: Construct a flexible budget performance report that would be useful in assessing how well
costs were controlled in this department.
(Points : 30)
Answer
Department of a large company
Flexible Budget Performance Report
Actual costs incurred Flexible budget Variance
Activity level (in units) 500 500
Variable costs:
Indirect materials $5,950 5,980 $30 F
Electricity 1,112 1,120 $8 F
Total variable costs $7,062 $7,100
Fixed Costs:
Administration 2,770 2,800 $30 F
Rent 5,120 5,100 -$20 U
Total fixed costs 7,890 7,900
Total costs $14,952 $15,000 $48 F
double check $48 [Show Less]