Question
This assignment consists of two independent scenarios for which computations should be shown. Scenario A Skaters, Inc. plans to sell 90,000 skateboards next quarter at
This assignment consists of two independent scenarios for which computations should be shown.
Scenario A
Skaters, Inc. plans to sell 90,000 skateboards next quarter at a price of $36 per unit. Production costs are $14.40 per unit. Selling and administrative expenses are: variable, $7.20 per unit; and fixed, $604,800 per quarter. What are the budgeted earnings for next quarter? (Do not consider federal income taxes.)
Show the analysis in a table format. Show me how your interpretation of the information presented in the table.
Scenario B
Houston Corporation considers materials and labor to be completely variable costs. Expected production for the year is 50,000 units.
- At that level of production, direct materials cost is budgeted at $198,000, and direct labor cost is budgeted at $450,000. Create a flexible budget for materials and labor for possible production levels of 52,500, 60,000, and 67,500 units of product.
- Assume that in the previous exercise the actual production was 60,000 units, materials cost was $247,000, and labor cost was $510,000. What are the budget variances?
Can I get help with this and shown how the work was completed, thanks again for your time and help.
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