Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crane Corporation's master budget for the year is shown below. Chec Sales (61,808 units) Cost of goods sold: $ 2,163,000 Direct materials $ 185,400 Direct

image text in transcribed
image text in transcribed
image text in transcribed
Crane Corporation's master budget for the year is shown below. Chec Sales (61,808 units) Cost of goods sold: $ 2,163,000 Direct materials $ 185,400 Direct labor 488,220 Overhead (variable overhead applied at 48% of direct labor cost) 258,800 931,620 Gross profit $ 1,231,380 Selling expenses: Sales commissions (ociable) $ 168,096 Rent (all fixed) 58,000 Insurance (all shortFixed) 48,000 General expenses: Salaries (all short-texed) 101,600 Rent (all short-term) 86,000 Depreciation (all short fixed) 68.000 529,096 Operating income 5 702,284 Required: 1. During the year, the company manufactured and sold 56,800 units of product. Prepare a flexible budget for this level of output 2. Now suppose that the actual level of output was 66,800 units. Prepare a flexible budget for this output level Complete this question by entering your answers in the tabs below. Required 1 Required 2 During the year, the company manufactured and sold 56,800 units of product. Prepare a flexible budget for this level of output. (Do not round intermediate calculations.) CRANE CORPORATION Flexibic B get Sales Less Cost of goods sold Direct materials Direct labor Required 2 During the year, the company manufactured and sold 56,800 units of product. Prepare a flexible budget for this level of output. (Do not round intermediate calculations.) CRAPORATION Fudget Sales Less: Cost of goods sold Direct materials Direct labor Manufacturing overhead: Variable Fbced Gross profit Less: Operating expenses Selling expenses Sales commissions Rent Insurance General expenses Salaries Rent Depreciation Operating income s Requina Required 2 > Search RE Complete this question by entering your answers in the tabs below. Required 1 Required 2 Now suppose that the actual level of output was 66,800 units. Prepare a flexible budget for this output level. (Do not round intermediate calculations.) CRANESOORATION Fleudget Sales Less: Cost of goods sold. Direct materials Direct labor Manufacturing overhead Variable Fixed Gross profit Less: Operating expenses Selling expenses Sales commissions Rent Insurance General expenses Salaries Rent Depreciation Operating income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting The Cornerstone Of Business Decision-making, , (6 Months)

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

7th Edition

1337115924, 9781337115926

More Books

Students also viewed these Accounting questions