Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses exible budgets that are based on the following data: Sales commissions 15% of sales Advertising expense 20% of sales Miscellaneous administrative expense $9,000 per month plus 12% of sales Ofce salaries expense $29,000 per mond'1 Customer support expenses $14,000 per mond'1 plus 20% of sales Research and development expense $32,000 per month Prepare a exible selling and administrative expenses budget for March for sales volumes of $400,000, $500,000, and $600,000. {Use Exhibit 5 as a model.) ) Cloud Productivity Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending March 31 Total sales $400000 $500000 $600000 Variable cost: Sales commissions v J Advertising expense v J Miscellaneous administrative expense v .1 Customer support expenses v 1! E0000 E0000 30000 Total variable cost Variable cost: Sales commissions Advertising expense Miscellaneous administrative expense Customer support expenses Total variable cost Fixed cost: Miscellaneous administrative expense 100 0000 0200 Office salaries expense 10 03000 030 Customer support expenses Research and development expense V Total fixed cost Total selling and administrative expenses FeedbackStatic Budget versus Flexible Budget The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year: Niland Companyr Machining Department Monthly Production Budget Wages $312,000 Utilities 1?,000 Depreciation 28,000 Total $35?,000 The actual amount spent and the actual units produced in the rst three months in the Machining Department were as follows: Amount Spent Units Produced January $336,000 65,000 February 320,000 59,000 March 304,000 53,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for JanuaryMarch have been signicantly less than the monthly static budget of 35?,000. However, the plant manager believes that the budget should not remain xed for every month but should \"ex" or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: Wages per hour $22 Utility cost per direct labor hour $1.2 \f37900 Hours per unit Total hours of production Wages per hour X $ X $ X $ Total wages Total hours of production Utility costs per hour X $ X S X $ Total utilities Feedback Check My Work For each level of production, show wages, utilities, and depreciation. Learning Objective 2, Learning Objective 4. b. Compare the flexible budget with the actual expenditures for the first three months. January February March Total flexible budget Actual cost Excess of actual cost over budgetCabinaire Inc. is one of the largest manufacturers of ofce furniture in the United States. In Grand Rapids, Michigan, it assembles ling cabinets in an Assembly Department. Assume the following information for the Assembly Department: Direct labor per ling cabinet 20 minutes Supervisor salaries $111,000 per month Depreciation $21000 per month Direct labor rate $15 per hour Prepare a exible budget for 15,000, 19,000, and 23,000 ling cabinets for the month of March in the Assembly Department similar to Exhibit 5. Enter all amounts as positive numbers. Cabinaire Inc. Assembly Department Budget Month Ending March 31 (assumed data) ) Units of production 15,000 19,000 23,000 Variable cost: I'I Total variable cost Fixed cost: Ivi Ivi Total xed cost 0000 00 0000 00 Total department costs "0000 |0|0 Production Budget Weightless Inc. produces a Bad'1 and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows: Bath (rm Scale Scale East Region unit sales 19,400 3?,900 West Region unit sales 21,000 22,100 Total 40,400 60,000 The nished goods inventory estimated for October 1, for the Bath and Gym scale models is 1,200 and 2,200 units, respectively. The desired nished goods inventoryr for October 31 for the Bath and Gym scale models is 900 and 2,400 units, respectively. Prepare a production budget for the small and large scales for the month ended October 31. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Weightless Inc. Production Budget For the Monl Ending October 31 Units Bath Scale Units Gym Scale Total Total units to be produced 00000 00000 Sales and Production Budgets Sonic Inc. manufactures two models of speakers, Rumblel and Thunder. Based on the following production and sales data for June. prepare (a) a sales budget and (b) a production budget: Rumble Thunder Estimated inventoryl {units}, June 1 230 61 Desired inventory [units], June 30 264 53 Expected sales volume [units]: Midwest Region 2,250 2,500 South Region 5,300 4,600 Unit sales price $135 $185 Sonic Inc. Sales Budget For the Hon1 Ending June 30 ) a. Prepare a sales budget. Product and Area Unit Sales Volume Unit Selling Price Total Sales Model: Rumble South Region Midwest Region I: D l: 1: Total 1:] ||D|DG Midwest Region South Region Total Model: Thunder Midwest Region South Region Total EDD DUE ED HE iiiiii WT Total revenue from sales I). Prepare a production budget. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Sonic Inc. Production Budget For lire Month Ending June so Units Rumble Units Thunder Total DDDDD DDDDD Total units to be produced Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 20% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remaining 80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October $113,000 November 141,000 December 207,000 The Accounts Receivable balance on September 30 was $76,000. Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar. OfficeMart Inc. Schedule of Cash Collections from Sales For the Three Months Ending December 31 October November December Receipts from cash sales: Cash sales September sales on account: Collected in October October sales on account: Collected in October Collected in November