User Account

All Pages

Basic flexible budgeting centron inc has the following

Assignment Help Accounting Basics
Reference no: EM13583278

Basic flexible budgeting Centron, Inc., has the following budgeted production costs: Direct materials $0.40 per unit Direct labor 1.80 per unit Variable factory overhead 2.20 per unit Fixed factory overhead Supervision $24,000 Maintenance 18,000 Other 12,000 The company normally manufactures between 20,000 and 25,000 units each quarter. Should output exceed 25,000 units, maintenance and other fixed costs are expected to increase by $6,000 and $4,500, respectively. During the recent quarter ended March 31, Centron produced 25,500 units and incurred the following costs: Direct Materials $10,710 Direct Labor 47,175 Variable factory overhead 51,940 Fixed factory overhead Supervision 24,500 Maintenance 23,700 Other 16,800 Total production costs $174,825

Instructions:

a. Prepare a flexible budget for 20,000, 22,500, and 25,000 units of activity.

b. Was Centron's experience in the quarter cited better or worse than anticipated? Prepare an appropriate performance report and explain your answer.

c. Explain the benefit of using flexible budgets (as opposed to static budgets) in the measurement of performance.

Reference no: EM13583278

Questions Cloud

Compute the net realizable value at the end of 20x1 and : 1. recognition of concepts. jim armstrong operates a small company that books entershytainers for theaters parties
A company has 125 per unit in variable costs and 175000 : a company has 125 per unit in variable costs and 175000 per year in fixed costs. the company wants a markup of 40. what
What are some of the advantages and disadvantages to using : 1. what are some of the advantages and disadvantages to using gas chromatography for the analysis of forensic andor
Benz company is considering the purchase of a machine that : benz company is considering the purchase of a machine that costs 100000 has a useful life of 18 years and no salvage
Basic flexible budgeting centron inc has the following : basic flexible budgeting centron inc. has the following budgeted production costs direct materials 0.40 per unit direct
Deibel corporation is considering a project that would : deibel corporation is considering a project that would require an investment of 59000. no other cash outflows would be
Buy-rite pharmacy has purchased a small auto for delivering : buy-rite pharmacy has purchased a small auto for delivering prescriptions. the auto was purchased for 9000 and will
Identify the first 36 elements in the periodic table and : 1. identify the first 36 elements in the periodic table and understand how their atomic structure affects their
A company has the choice of either selling 1000 defective : a company has the choice of either selling 1000 defective units as scrap or rebuilding them. the company could sell the

Reviews

Write a Review

Accounting Basics Questions & Answers

  Izabelle and marta are forming a partnership izabelle will

izabelle and marta are forming a partnership. izabelle will invest a piece of equipment with a book value of 7500 and a

  Analyse how applying these voluntary guidelines

In recent years directors and CEOs of companies have been placing more importance on holistic reporting of company activities rather than simply reporting what is required by the Accounting Standards, the Corporations Act and other legislation.

  Unadjusted interest expense account

The long-term note payable bears interest at 12% per year. The unadjusted Interest Expense account equals the amount paid for the first 11 months of the 2009 fiscal year. The $230 accrued interest for June has not yet been paid or recorded.

  De to the nature of the product and the process units are

haskell brothers products inc. manufactures a liquid product in one department. due to the nature of the product and

  Effect on company overall net operating income

Further investigation has revealed that $144,000 of the fixed manufacturing expenses and $93,000 of the fixed selling and administrative expenses are avoidable if product U23N is discontinued. What would be the effect on the company's overall net ..

  Common stock balance sheet disclosure

Common stock balance sheet disclosure

  Amount of under or overallocation of manufacturing overhead

Compute the amount of under- or overallocation of manufacturing overhead. Is the amount material? Prepare a journal entry to dispose of this amount.

  Herbert exchanges a business machine which has an adjusted

herbert exchanges a business machine which has an adjusted basis of 40000 for a new machine worth 40000. in addition he

  Basics of proportionate consolidation concept

Under the proportionate consolidation concept, which of the following statements is true?

  What is the sarbanes-oxley act

What is the Sarbanes-Oxley Act? How does act affect the audits for the accounting firm and for the organization? Has the Sarbanes-Oxley Act improved the quality of the audit? Answer in 150-200 words.

  The project is completed in 2012 and a successful patent is

the project is completed in 2012 and a successful patent is obtained. the rampd costs to complete the project are

  Accounting engagement for acme company

CPA Smith completed an accounting engagement for the ACME Company on December 20, 20X1, and sent ACME a bill for $5,000 which ACME paid on January 25, 20X2. CPA Smith uses the cash basis of accounting

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd