Reference no: EM13935173
At the end of 2011, Cyril Fedako, CFO for Fedako Products, received a report comparing budgeted and actual production costs for the company's plant in Forest Lake, Minnesota:
.png)
His first thought was that costs must be out of control since actual costs exceed the budget by $585,000. However, he quickly recalled that the budget was set assuming a production level of 60,000 units. The Forest Lakeplant actually produced 65,000 units in 2011.
Required:
a. Given that production was greater than planned, should Cyril expect that all actual costs will be greater than budgeted? Which costs would you expect to increase, and which costs would you expect to remain relatively constant?
b. Cyril is extremely busy the company has six other plants. Therefore, he cannot spend time investigating every departure from the budget. With this in mind, which cost(s) should Cyril concentrate on in his investigation of budget differences?
|
Firms cash balances consist of transactions-compensating
: Most firm's cash balances consist of transactions, compensating, precautionary, and speculative balances, and the optimal total cash balance is found as the sum of the amounts needed for each of these purposes. Some firms choose to hold highly liquid..
|
|
What tests could be done in the lab
: What reacted with what to form more corbon dioxide to make the dough rise more. What produced lactate, and what did the sugar react with the yeast or something elese?
|
|
Awareness and understanding of the nature of an organisation
: This task is designed to develop your awareness and understanding of: the nature of an organisation; the considerations, aspects and the complexities involved in having an organisational system in place;
|
|
What is the value of the property
: A property is expected to generate no net operating income for the next two years (t=1 and t=2) due to a higher level of operating expenses. In the third year (t=3), net operating income is expected to be $20,000 and in the fourth year (t=4) it is ex..
|
|
Given that production was greater than planned
: Given that production was greater than planned, should Cyril expect that all actual costs will be greater than budgeted?
|
|
Determine the annual net operating income
: Determine the annual Net Operating Income (NOI) and the cash flow before taxes using the assumptions and facts for the following real estate investment: Using the information from question #2, determine the Taxable Income or Loss. Using the informati..
|
|
What types are generally prevented from passing through
: What types of chemical can generally pass through phospholipid portions of the cell membrane and why? What types are generally prevented from passing through and why?
|
|
What was your total nominal rate of return on investment
: Suppose you bought a bond with an annual coupon rate of 4.2 percent one year ago for $900. The bond sells for $950 today. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? What was your total nomin..
|
|
What is the payment for the monthly debt service
: Danny Developer seeks secondary financing, a $750,000 mortgage, term 25 years, interest rate is 13.5% and payments include principal and interest with level monthly payments. What is the payment for the monthly debt service? What is the mortgage bala..
|