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question 2

December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget: Cash balance, September 1 (from a summer job) Purchase season football tickets in September Additional entertainment for each month Pay fall semester tuition in September Pay rent at the beginning of each month Pay for food each month Pay apartment deposit on September 2 (to be returned December 15) Part-time job earnings each month (net of taxes) $7,540 100 260 4,100 360 200 500 930 Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an overall cash decrease which should be indicated with a minus sign. b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets? c. Malloy can see that her present plan December, with no time left to adjust. sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $ sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be \$ at the end of The production supervisor of the Machining Department for Celtic Company agreed to the following monthly static budget for the upcoming year: Celtic Company Machining Department Monthly Production Budget \begin{tabular}{lr} \hline Wages & $336,000 \\ Utilities & 14,000 \\ Depreciation & 23,000 \\ \hline Total & $373,000 \\ \hline \end{tabular} The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: \begin{tabular}{lcc} & AmountSpent & UnitsProduced \\ \hline January & $350,000 & 56,000 \\ February & 334,000 & 51,000 \\ March & 318,000 & 46,000 \end{tabular} remain fixed for every month but should "flex" 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 Utility cost per direct labor hour Direct labor hours per unit Planned monthly unit production $22.00 $0.90 0.25 61,000 Feedback Check My Work For each level of production, show wages, utilities, and depreciation. Consider performance and spending. b. Compare the flexible budget with the actual expenditures for the first three months. What does this comparison suggest? The Machining Department has performed better than originally thought. The department is spending more than would be expected