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10 points eBook Hint 1!! Print References Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 108,000 units per year is: Direct materials $2.00 Direct labor $3.00 Variable manufacturing overhead $1.00 Fixed manufacturing overhead $4.45 Variable selling and administrative expenses $1.10 Fixed selling and administrative expenses $2.00 The normal selling price is $20.00 per unit. The company's capacity is 129,600 units per year. An order has been received from a mail- order house for 1,800 units at a special price of $17.00 per unit. This order would not affect regular sales or the company's total fixed costs. Required: 1. What is the nancial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special order, assume the company's inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for these units? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of accepting the special order? References You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device The president has asked that you review the company's costing system and \"do what you can to help us get better control of our manufacturing overhead costs.\" You nd that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in Cost Formula March Utilities $16,700 + $0.14 per machinehour $ 21,440 Maintenance $38,700 + $2.00 per machinehour $ 74,500 Supplies $0.50 per machinehour $ 10,300 Indirect labor $94,000 + $1.60 per machinehour $128,500 Depreciation $68,200 $ 69,900 During March, the company worked 19,000 machinehours and produced 13,000 units. The company had originally planned to work 21,000 machine-hours during March. Required: 1. Prepare a flexible budget for March. 2. Prepare a report showing the spending variances for March. Complete this question by entering your answers In the tabs below. Required 1 Required 2 Prepare a report showing the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Utilities Maintenance Supplies Indirect labor Depreciation ( Re-uired1 10 points eBook @ Hint E! Print References Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 108,000 units per year is: Direct materials $2.00 Direct labor $3.00 Variable manufacturing overhead $1.00 Fixed manufacturing overhead $4.45 Variable selling and administrative expenses $1.10 Fixed selling and administrative expenses $2.00 The normal selling price is $20.00 per unit. The company's capacity is 129,600 units per year. An order has been received from a mail- order house for 1,800 units at a special price of $17.00 per unit. This order would not affect regular sales or the company's total fixed costs. Required: 1. What is the nancial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special order, assume the company's inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for these units? Complete this question by entering your answers in the tabs below. Required 1 Required 2 As a separate matter from the special order, assume the company's inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for these units? (Round your answer to 2 decimal places.) Show lessA References The president of the retailer Prime Products hasjust approached the company's bank with a request for a $59,000, 90day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difculty in paying off its loans in the past, the loan ofcer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which the loan will be used: a. On April 1, the start of the loan period, the cash balance will be $37,000. Accounts receivable on April 1 will total $162,400, of which $139,200 will be collected during April and $18,560 will be collected during May. The remainder will be uncollectible. b. Past experience shows that 30% ofa month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% is bad debts that are never collected. Budgeted sales and expenses for the threemonth period follow: April May June Sales (all. on account) $422,000 $496,000 $337,000 Merchandise purchases $270,000 $203,500 $174,000 Payroll $ 28,400 $ 28,400 $ 25,300 Lease payments $ 40,800 $ 40,800 $ 40,800 Advertising $ 78,200 $ 78,200 $ 65,880 Equipment purchases $ 76,000 Depreciation $ 28,200 $ 28,200 $ 28,200 c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in April, total $172,500. d. In preparing the cash budget, assume that the $59,000 loan will be made in April and repaid in June. Interest on the loan will total $940. Required: 1. Calculate the expected cash collections for April, May, and June, and for the three months in total. 2. Prepare a cash budget, by month and in total, for the threemonth period. Complete thls questlon by enterlng your answers In the tabs below. Required 1 Required 2 Calculate the expected cash collections for April, May, and June, and for the three months in total. Total cash collections ---- 2 2. Prepare a cash budget, by month and in total, for the three-month period. Complete this question by entering your answers in the tabs below. 10 points Required 1 Required 2 Prepare a cash budget, by month and in total, for the three-month period. (Cash deficiency, repayments and interest should be eBook indicated by a minus sign.) Prime Products Print Cash Budget April May June Quarter Beginning cash balance References Add receipts Collections from customers Total cash available Less cash disbursements: Merchandise purchases Payrol Lease payments Advertising Equipment purchases Total cash disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments Interest Total financing Ending cash balance Benoit Company produces three productsA, B, and C. Data concerning the three products follow (per unit): Product 10 A B C points Selling price $30.00 $54.00 $80.00 Variable expenses: Direct materials 24.00 18.00 12.00 Other variable expenses 24.00 25.20 44.00 E Total variable expenses 48.00 43.20 56.00 eook Contribution margin $32.00 $10-30 $24-00 Contribution margin ratio 4095 2095 3096 iEI- ' The company estimates that it can sell 850 units of each product per month. The same raw material is used in each product. The TI material costs $3 per pound with a maximum of 7,000 pounds available each month. References Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 7,000 pounds of materials? Complete this question by entering your answers In the tabs below. Required 1 Required 2 Required 3 What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 7,000 pounds of materials? (Round your intermediate calculations to 2 decimal places.) ( Required 2 References You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs.\" You nd that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in Cost Formula March Utilities $16,700 + $0.14 per machinehour $ 21,440 Maintenance $38,700 + $2.00 per machinehour $ 74,500 Supplies $0.50 per machinehour $ 10,300 Indirect labor $94,000 + $1.60 per machinehour $128,500 Depreciation $68,200 $ 59,900 During March, the company worked 19,000 machinehours and produced 13,000 units' The company had originally planned to work 21,000 machine-hours during March. Required: 1. Prepare a flexible budget for March. 2. Prepare a report showing the spending variances for March. Complete this question by enterlng your answers In the tabs below. Required 1 Required 2 Prepare a exible budget for March. (Input all amounts as positive values.) Machine-hours Utilities Maintenance Supplies Indirect labor Depreciation Total