Question
Company information: Number of units of the company's only product: Budgeted Mar. 20X1 Actual Included in inventory on hand at March 1, 20X1 NA 8,000
Company information: | ||||||
| Number of units of the company's only product: | Budgeted | Mar. 20X1 Actual |
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| Included in inventory on hand at March 1, 20X1 | NA | 8,000 | units | |
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| Manufactured during month ended March 31, 20X1 | NA | 102,000 | units | |
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| Sales for month of March 20X1 | ? | 105,000 | units | |
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| Budgeted total production and sales for fiscal year ended (FYE) Dec. 31, 20X1 | 1,200,000 | NA | units | |
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| Per-unit information: | Budgeted | Mar. 20X1 Actual | 17M8W1 | ||
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| Average selling price | $ 150.00 | $ 150.00 |
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| Variable manufacturing costs | ||||
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| Direct materials (DM) | $ 31.50 | $ 32.00 | 17M8W1 |
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| Direct labor (DL) | 26.50 | 25.50 |
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| Manufacturing overhead (MOH) (Var. MOH) | 37.00 | 38.50 |
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| Variable selling and administrative (S&A) cost (Var. S&A) | $ 15.00 | $ 14.50 |
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| Fixed costs: | Budget 20X1 |
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| (see Note 1) | Mar. 20X1 Actual |
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| Manufacturing overhead (MOH) costs (Fxd MOH) | $ 8,400,000 | $ 714,000 |
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| Selling and administrative (S&A) costs (Fxd S&A) | $ 9,000,000 | $ 770,000 |
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| Research and development (R&D) costs | $ 6,000,000 | $ 510,000 |
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| Other information: | |||||
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| Budgeted net income for month ended March 31, 20X1 | $ 630,000 |
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| Company's projected combined effective tax rate for FY 20X1 | 40.0% | (i.e., 0.40) | ||
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| Cost of contemplated supplemental advertising campaign for March 20X1 | $ 130,000 | (see Note 2) | ||
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| Note 1 - Management's monthly budget for each category of fixed costs listed is 1/12 of the annual budget amount | |||||
| Note 2 - Management estimates that the supplemental advertising, if conducted, would generate a 7.5% increase in sales (units and | |||||
| dollars), compared to budget, for the month of March 20X1. |
Using the information about Western Manufacturing Company provided below, complete the following two tabs in this MS Excel Workbook:
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