Question
1.A company determined that the budgeted cost of producing a product is $30per unit. On June 1, there were78000units on hand, the sales department budgeted
1.A company determined that the budgeted cost of producing a product is $30per unit. On June 1, there were78000units on hand, the sales department budgeted sales of280000units in June, and the company desires to have100000units on hand on June 30. The budgeted cost of goods sold for June would be
A. $7740000.
B. $8400000.
C. $10740000.
2. CraneManufacturing uses a flexible budget. It has the following budgeted manufacturing costs for24000pairs of shoes: Fixed Manufacturing Costs, $11500and Variable Manufacturing Costs, $10.00per pair of shoes. IfCraneManufacturing makes19000pairs of shoes this month, what are the total budgeted manufacturing cost for the month?
A. $251500.
B. $240000.
C. $201500.
3. Crane Companyhad sales of $300000, variable costs of $100000, and direct fixed costs totaling $100000. The company's operating assets total $600000, and its required return is10%. How much is the residual income?
A. $40000
B. $40000
C. $60000
4. Sheridan Companyuses flexible budgets. At normal capacity of21000units, budgeted manufacturing overhead is: $63000variable and $270000fixed. If Stone had actual overhead costs of $334400for23000units produced, what is the difference between actual and budgeted costs?
A. $4600favorable
B. $13800unfavorable
C. $18400favorable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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