Question
1.) State University Business School (SUBS) offers several degrees, including Bachelor of Business Administration (BBA). The new dean believes in using cost accounting information to
1.) State University Business School (SUBS) offers several degrees, including Bachelor of Business Administration (BBA). The new dean believes in using cost accounting information to make decisions and is reviewing a staff-developed income statement broken down by the degree offered. The dean is considering closing down the BBA program because the analysis, which follows, shows a loss. Tuition increases are not possible. The dean has asked for your advice. If the BBA degree program is dropped, school administration costs are not expected to change, but direct costs of the program, such as operating costs, building maintenance, and classroom costs, would be saved. There will be no other changes in the operations or costs of other programs.
2.) Pine Ridge Cabinets (PRC) produces cabinets for new home builders. You have been called in to settle a dispute between PRC and Eastern Homes, a builder of custom homes.
3.) Assume that Carmen's Cookies is preparing a budget for the month ending June 30. Management prepares the budget by starting with the actual results for April 30. Next, management considers what the differences in costs will be between April and June. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Management expects the number of cookies sold to be 10 percent greater in June than in April, and it expects all food costs (e.g., flour, eggs) to be 10 percent higher in June than in April. Management expects "other" labor costs to be 15 percent higher in June than in April, partly because more labor will be required in June and partly because employees will get a pay raise. The manager will get a pay raise that will increase the salary from $3,300 in April to $3,800 in June. Rent and utilities are not expected to change. |
Required: |
Prepare a budget for Carmen's Cookies for June. (Omit the "$" sign in your response.) |
CARMEN'S COOKIES Retail Responsibility Center Budgeted Costs For the Month Ending June 30 | ||||
Actual (April) | Budget (June) | |||
Food | ||||
Flour | $ | 2,800 | $ | |
Eggs | 5,500 | |||
Chocolate | 1,900 | |||
Nuts | 2,500 | |||
Other | 2,100 | |||
Total food | $ | 14,800 | $ | |
Labor | ||||
Manager | $ | 3,300 | $ | |
Other | 1,400 | |||
Total labor | $ | 4,700 | $ | |
Utilities | 1,900 | |||
Rent | 5,300 | |||
Total cookie costs | $ | 26,700 | $ | |
| | | | |
Number of cookies sold | 38,000 |
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started