I need help on 11.02-11.14 (Budgeted Operating Income Using Variable Direct Costing)
l See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets Cash Accounts Receivable Inventory $34,710.00 67,500.00 Raw Material 500 a $9.20 500 $1.25 4,600.00 625.00 Figurines Electrical Sets Work in Process 3000 a $28.9250 Finished Goods Total Current Assets 86,775.00 $ 194,210.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets $ 20,000.00 6,800.00 13,200.00 $ 207,410.00 Total Assets l See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets Cash Accounts Receivable Inventory S 34,710.00 67,500.00 Raw Material 500 @ S9.20 500 S1.25 Figurines 4,600.00 625.00 Electrical Sets Work in Process Finished Goods Total Current Assets 86,775.00 $ 194,210.00 3000 @ $28.9250 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets S 20,000.00 6.800.00 13,200.00 $ 207,410.00 Total Assets Current Liabilities Accounts Payable Total Liabilities $ 54,000.00 $ 54,000.00 Stockholder's Equity Common Stock Retained Earnings $ 12,000.00 141,410.00 Total Stockholder's Equity Total Liabilities and Stockholder's Equity 153,410.00 $ 207,410.00 The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are Figurines Electrical Sets Lamp Shade Direct Labor: Variable Overhead: Fiked Overhead: $9.2000000 per lamp 1.2500000 per lamp 6.0000000 per lamp 2.2500000 per lamp (4 lampslhr.) 0.2250000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $28.9250000 per lam Expected increases for 202 When calculating projected increases round to SEVEN decimal places,$0.0000000 1. Material Costs are expected to increase by 3.00% 2. Labor Costs are expected to increase by 4.50%. 3. Variable Overhead is expected to increase by 4.00%. 4. Fixed Overhead is expected to increase to $275,000 5. Fied selling expenses are epected to be $29,000 in 20H2. 6. Variable selling expenses [measured on a per lamp basis) are expected to increase by 2.50%. 7. Fixed Administrative epenses are expected to increase by $16,000 trative expenses for 20 0 were $40,320.00, whern 23,000 units were sold. Use the High-Low method to calculate the total fied administrative expense 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 6.00%. The total administrative expenses for 2080 were $40,320.00, when 23,000 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp On the following schedule develop the following figures: 1- 20H2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20H2 Projected Variable Unit Cost per lamp 3- 20H2 Projected Fised Costs. 7 Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Selling Expenses & Admin. Expenses Net Operating Income 39000 47 1038912.64 794087.36 212574.85 581,512.51 10.01) l See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets Cash Accounts Receivable Inventory $34,710.00 67,500.00 Raw Material 500 a $9.20 500 $1.25 4,600.00 625.00 Figurines Electrical Sets Work in Process 3000 a $28.9250 Finished Goods Total Current Assets 86,775.00 $ 194,210.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets $ 20,000.00 6,800.00 13,200.00 $ 207,410.00 Total Assets l See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets Cash Accounts Receivable Inventory S 34,710.00 67,500.00 Raw Material 500 @ S9.20 500 S1.25 Figurines 4,600.00 625.00 Electrical Sets Work in Process Finished Goods Total Current Assets 86,775.00 $ 194,210.00 3000 @ $28.9250 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets S 20,000.00 6.800.00 13,200.00 $ 207,410.00 Total Assets Current Liabilities Accounts Payable Total Liabilities $ 54,000.00 $ 54,000.00 Stockholder's Equity Common Stock Retained Earnings $ 12,000.00 141,410.00 Total Stockholder's Equity Total Liabilities and Stockholder's Equity 153,410.00 $ 207,410.00 The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are Figurines Electrical Sets Lamp Shade Direct Labor: Variable Overhead: Fiked Overhead: $9.2000000 per lamp 1.2500000 per lamp 6.0000000 per lamp 2.2500000 per lamp (4 lampslhr.) 0.2250000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $28.9250000 per lam Expected increases for 202 When calculating projected increases round to SEVEN decimal places,$0.0000000 1. Material Costs are expected to increase by 3.00% 2. Labor Costs are expected to increase by 4.50%. 3. Variable Overhead is expected to increase by 4.00%. 4. Fixed Overhead is expected to increase to $275,000 5. Fied selling expenses are epected to be $29,000 in 20H2. 6. Variable selling expenses [measured on a per lamp basis) are expected to increase by 2.50%. 7. Fixed Administrative epenses are expected to increase by $16,000 trative expenses for 20 0 were $40,320.00, whern 23,000 units were sold. Use the High-Low method to calculate the total fied administrative expense 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 6.00%. The total administrative expenses for 2080 were $40,320.00, when 23,000 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp On the following schedule develop the following figures: 1- 20H2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20H2 Projected Variable Unit Cost per lamp 3- 20H2 Projected Fised Costs. 7 Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Selling Expenses & Admin. Expenses Net Operating Income 39000 47 1038912.64 794087.36 212574.85 581,512.51 10.01)
