BUSINESS COLLEGE

Brodrick Company expects to produce 21,000 units for the year ending December 31. A flexible budget for 21,000 units of production reflects sales of $504,000; variable costs of $63,000; and fixed costs of $141,000. Assume that actual sales for the year are $595,600 (26,900 units), actual variable costs for the year are $114,000, and actual fixed costs for the year are $133,000. Prepare a flexible budget performance report for the year.

Answers

Answer 1
Answer:

Answer:

Brodrick Company

Flexible Budget Performance Report for the year ended December 31

                                 Flexible        Actual          Variance

                                 Budget        Budget        

Sales unit                 21,000           26,900          5,900 units F

Sales revenue    $645,600      $595,600     $50,000 U

Variable costs         80,700          114,000        33,300 U

Fixed costs             141,000         133,000          8,000 F

Total costs          $221,700      $247,000      $25,300 U

Profit                  $423,900      $348,600      $75,300 U

Explanation:

a) Data and Calculations:

Flexible Budget for 21,000 units

Sales revenue = $504,000

Variable cost = $63,000

Fixed costs = $141,000

Flexing the budget with 26,900 units:

Sales revenue = $645,600 ($504,000/21,000 * 26,900)

Variable costs = $80,700 ($63,000/21,000 * 26,900)

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When using a perpetual inventory system and the weighted-average inventory costing method, a new weighted-average cost per unit is computed __________ each __________.

Answers

Answer:

After each purchase

Explanation:

perpetual inventory system can be regarded as a kind of inventory management that utilize technology in the documentation of real-time transactions whenever stock is received or sold, this method is reliable and the efficiency is high compare to

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Sandpiper Inc. has a division that manufactures a component that sells for $ 160 and has a variable cost of $ 35. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $ 25. What is the minimum transfer price if the division is operating at​ capacity?

Answers

Answer:

market price $160

Explanation:

The division is operating at capacity.

This means is selling all the output to the market.

So if the division purchase at a lower price than market, it will reduce the profit of the division.

It this case the division minumin transfer price is the market price which is $160 Doing otherwise decrease the income of the company.

Best Brands Appliance Mart is getting ready for its annual Labor Day sale. There are two Best Brands stores, one in midtown Manhattan and another in Amityville. Merchandise is stored in two warehouses, one in Brooklyn and one in Baldwin. From experience in past years, the owners know the big mover during the sale is tablets. The Manhattan store needs 500, while the Amityville store will require 400. Each warehouse has 600 tablets in stock. It costs $1 and $2 to ship a tablet from Brooklyn to Manhattan and to Amityville, and $2 and $4 to ship one from Baldwin to Manhattan and Amityville. What is the best shipping strategy for getting the tablets from the warehouses into the stores to minimize the shipping cost?

Answers

Answer:

Explanation:

From the given information:

Assuming we represent x to be the tablets sent from Brooklyn to Manhattan

Thus, (500 - x) to be the tablets sent from Baldwin to Manhattan

Also, suppose we represent y to be the tablets sent from Brooklyn to Amityville

It implies that (400 - x) to be the tablets sent from Baldwin to Amityville

∴

x ≥ 0 ; y ≥ 0  

⇒   500 - x ≥ 0  & 400 - y ≥ 0

The Shipping cost Z = 1(x) + 2(500-x) + 2(y) + 4(400-y)

Z = x + 1000 - 2x + 2y + 1600 - 4y

Z = x -2y + 2600

To minimize the shipping cost:

\left \{ 500-x \geq 0 \ \implies \ x\leq 500}} \atop {400-y \geq 0 \ \implies \ y\leq 400}} \right.

Thus, by replacing the coordinate values (x,y) into Z, we have:

Point    Coordinates(x,y)    Value of Z (shipping cost)

0             (0,0)                             0

A             (0,400)                     1800

B             (500,400)                 1300

C             (500,0)                      2100

Hence, the minimum cost is 1300.

x = 500 units   and  y = 400 units

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Answers

Answer:

Please find attached detailed solution to the above question.

Explanation:

Please as attached detailed solution.

Kinslow Manufacturing Company paid a dividend yesterday of $2.50 per share. The dividend is expected to grow at a constant rate of 5% per year. The price of Kinslow's common stock today is $25 per share. If Kinslow decides to issue new common stock, flotation costs will equal $2.00 per share. Keys' marginal tax rate is 34%. Based on the above information, the cost of retained earnings is;

Answers

Answer:

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Explanation:

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Answers

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