Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company In western Siberia. The cost of the muskoll is $160 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3 Year 2 Year3 First Second Third Fourth First Budgeted production, 62,000 92,000 152,600 102,000 in bottles 72,000 The Inventory of musk all at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 37.200 grams of musk all will be on hand to start the first quarter of Year 2 Required: Prepare a direct materials budget for musk oil, by Quarter and in total, for Year 2. Mink Caress Direct Materials Budget - Year 2 Quarter First Second Third Fourth Year Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased 1 1 10 points eBook Hint Vulcan Flyovers offers scenic overflights of Mount St Helens, the volcano in Washington State that explosively erupted In 1982. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Flexibleplanning Results Budget Budget Flights (9) 54 54 52 Revenue ($345.009) $16,200 $18,630 $17.940 Expenses: Wages and salaries ($3,500 + $90.00) 8,320 8,360 8,180 Fuel ($33.009) 1,946 1,782 1,716 Airport fees ($850 + $34.009) 2,592 2,696 2,628 Aircraft depreciation ($10.000) 540 548 520 Office expenses ($250 + $1.000) 472 302 Total expense 13,86913,682 13,346 Net operating income $ 2,331 $ 4,948 $ 4,594 Reference 304 The company measures its activity in terms of lights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount Required: 1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances(Indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorable, and "None" for no effect... zero variance). Input all amounts as positive values.) Vulcan Flyovers Flexible Budget Parformance Report For the Month Ended July 31 Actual Flexible Results Budget 54 54 Planning Budget 52 Flights $ 16,200 $ 18,630 $ 17,940 8,180 Revenue Expenses Wages and salaries Fuel Airport foos Aircraft depreciation Office expenses Total expense Net operating Income 8.320 1.946 2,591 540 8,360 1,782 2,696 540 1,716 2,628 520 302 13,346 $ 4,594 472 13,869 304 13,682 4,948 s 2,331 s
