Activity-based budgets

A master budgets is an example of a(n):

Bronze Company’s sales forecast for April is 12,000 units, for May is 22,000 units, and for June is 25,000 units. Sales totaled 10,000 units in March. The finished goods inventory for March was 2,000 units. End-of-month finished goods inventory levels are planned to be equal to 15 percent of the next month’s planned sales. The planned ending inventory of finished goods for May is: 

In 2018, Samantha’s Bath and Body Shop had variable costs of $27,000, fixed costs of $18,000, and a net loss of $4,500. ​ The annual sales volume required for Samantha’s to have a before-tax income of $18,000 is

Discuss the features of an ideal budgetary process.

Algonquin Products produces two products, X and Y, in a single process. In 2011, the joint costs of this process were $25,000. In addition, 4,000 units of X and 6,000 units of Y were produced. Separable processing costs beyond the split-off point were: X-$10,000; Y-$20,000. X sells for $10.00 per unit; Y sells for $7.50 per unit. ​ What amount of joint costs will be allocated to product X using the net realizable value net realizable value method?

Asian Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months for the current year are as follows:   Month Sales October 10,000 November 14,000 December 13,000 Finished goods inventory at the end of September was 3,000 units. Ending finished goods inventory is budgeted to equal 25 percent of the next month’s sales. Asian Lamp expects to sell the lamps for $25 each. January sales is projected at 16,000 lamps. ​ What is the expected sales revenue for December?

Deli Products produces two products, X and Y, in a single process. In 2011, the joint costs of this process were $25,000. In addition, 4,000 units of X and 6,000 units of Y were produced and sold. Separable processing costs beyond the split-off point were: X – $10,000; Y – $20,000. X sells for $10.00 per unit; Y sells for $7.50 per unit. ​ What is the gross profit of product Y assuming the physical units method is used?

Banzai Corporation produces calculators on an assembly line in a single-step process. Factrory overhead is applied based on direct labor cost. The following data pertains to September 2018:   Current manufacturing costs:        Materials purchased $150,000      Materials issued to production 120,000      Direct labor 40,000      Factory overhead 30,000     Finished goods for period 180,000 Beginning work in process 0     Ending work in process:        Materials 3,000      Direct labor ?      Factory overhead ? ​ Required:   a. Prepare traditional journal entries for the following events in September:       1. Purchase of materials on account   2. Requisition of materials into production   3. Usage of direct labor   4. Application of overhead   5. Completion of finished goods     b. What is the amount of direct labor in ending work in process?

Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed: Activity Cost Formula Maintenance $11,000 + $2 per machine hour Machining $55,000 + $3 per machine hour Inspection $70,000 + $500 per batch Setups $2,000 per batch Purchasing $80,000 + $150 per purchase order ​ Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders   Maintenance $20,000 Machining 73,000 Inspection 73,000 Setups 18,000 Purchasing 82,000 ​ What is the budget variance for total costs in an activity-based performance report?