| 1. | Complete the companys manufacturing overhead budget for the upcoming fiscal year. | | | | | Yuvwell Corporation | | Manufacturing Overhead Budget | | | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Year | | Variable manufacturing overhead | | | | | | | Fixed manufacturing overhead | | | | | | | Total manufacturing overhead | | | | | | | Less depreciation | | | | | | | Cash disbursements for manufacturing overhead | | | | | | | | 2. | Compute the company's manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. | | | | | | | | Total budgeted manufacturing overhead for the year | | | Budgeted direct labor-hours for the year | | | Predetermined overhead rate per hour for the year | | | please show the work | Exercise 7-6 Selling and Administrative Expense Budget [LO7-7] | The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below: | | | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | | Budgeted unit sales | 33,000 | 35,000 | 26,000 | 31,000 | | | | The companys variable selling and administrative expense per unit is $3.20. Fixed selling and administrative expenses include advertising expenses of $10,000 per quarter, executive salaries of $53,000 per quarter, and depreciation of $32,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $9,200 will be paid in the second quarter. | | Required: | | Prepare the companys selling and administrative expense budget for the upcoming fiscal year. (Round "Variable cost" answers to 2 decimal places.) | | | | | Weller Company | | Selling and Administrative Expense Budget | | | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Year | | | | | | | | | | | | | | | | | | | | | | | Fixed selling and administrative expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total fixed selling and administrative expenses | | | | | | | Total selling and administrative expenses | | | | | | | | | | | | | | Cash disbursements for selling and administrative expenses | | | | | | | Exercise 7-7 Cash Budget [LO7-8] | Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: | | | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | | Total cash receipts | $220,000 | $370,000 | $250,000 | $270,000 | | Total cash disbursements | $288,000 | $258,000 | $248,000 | $268,000 | | | | The companys beginning cash balance for the upcoming fiscal year will be $28,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. | | Required: | | Complete the company's cash budget for the upcoming fiscal year. (Cash deficiencies, disbursements, repayments, and interest should be indicated by a minus sign.) | | | | | Garden Depot | | Cash Budget | | | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Year | | Beginning cash balance | | | | | | | Total cash receipts | | | | | | | Total cash available | | | | | | | Less total cash disbursements | | | | | | | Excess of cash available over disbursements | | | | | | | Financing: | | | | | | | Borrowings | | | | | | | Repayments | | | | | | | Interest | | | | | | | Total financing | | | | | | | Ending cash balance | | | | | | | | Exercise 7-8 Budgeted Income Statement [LO7-9] | Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: | | | | Budgeted unit sales | 780 | | Selling price per unit | $2,110 | | Cost per unit | $1,615 | | Variable selling and administrative expenses (per unit) | $55 | | Fixed selling and administrative expenses (per year) | $300,000 | | Interest expense for the year | $27,000 | | | | Required: | | Prepare the companys budgeted income statement using an absorption income statement format. | | | | | Gig Harbor Boating | | Budgeted Income Statement | | | | | | | | | 0 | | | | | | 0 | | | | | | $0 | | | | |
