Prepare a manufactoring overhead budget . duncan compnay combines its operating

Question

Prepare a manufactoring overhead budget . duncan compnay combines its operating expenses for budget purposes in a selling and administrative expense budget. for the first 6 months of 2012 the following data are available 1. sales: 20,000 units quarter 1:22,000 units quarter 2 2. variable costs per dollar of sales : Sales commissions 5% deliver expense 2% and advertising 3% 3.fixed cost per quarter sales salaries $10,000, office salaries $6,000. depreciation $4200 inusarce $1500 utitltes $800 and reparis expense $600 4, unit selling price $20

Explanation / Answer

1) $5.80 X 6,100 = $35,380 2) Note; they ask just for cash receipts (i.e. the total amount of cash received during the month.) That amount is $455,000 3) d. Total unit cost would equal $4.40. Since actual production is in the relevant range the variable costs per unit, and the total fixed costs would not change. Total Variable costs per unit are: $29,400 / 9,800 = $3.00 Total variable costs for the month are: 15,800 X $3.00 = $47,400 Total costs are: $47,400 + $22,120 = $69,520 Total cost per unit is: $69,520 / $15,800 = $4.40 6. Solve this the same way as the one above. $400,400 / 5,200 = $77.00 $77.00 X 3,900 = $300,300 $300,300 + $141,500 = $441,800 7. (22,900 - 20,824) X $227 = $471,252 8. 2.60 X $10.30 = $26.78 10) (($519,939 / 8,100) X 8,500) + $198,100 = $743,715 11) ($418,000 + $20,000) / 0.60 = $730,000 19) ($728,000 X 0.21) - $69,000 = $83,880 20) If they're asking about the profit margin, the answer is: $1,050,000 / $11,400,000 = 9.21% 26. 1.70 X $9.20 = $15.64

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