1
Buckhorn Corporation bases its predetermined overhead rate on the estimated machine hours for the upcoming year. Data for the upcoming year appear below.
| Estimated machine hours | 85,000 |
| Estimated variable manufacturing overhead | $5.55 per machine hour |
| Estimated total fixed manufacturing overhead | $951,888 |
Required: Compute the company’s predetermined overhead rate. (Points : 25)
2
Matuseski Corporation is preparing its cash budget for October. The budgeted beginning cash balance is $17,000. Budgeted cash receipts total $187,000 and budgeted cash disbursements total $177,000. The desired ending cash balance is $40,000. The company can borrow up to $120,000 at any time from a local bank, with interest not due until the following month.
Required: Prepare the company’s cash budget for October in good form. (Points : 25)
3.
Bella Lugosi Holdings, Inc. (BLH), has collected the following operating information below for its current month’s activity. Using this information, prepare a flexible budget analysis to determine how well BLH performed in terms of cost control.
| Actual Costs Incurred | Static Budget | |
| Activity level (in units) | 5,250 | 5,178 |
| Variable costs: | ||
| Indirect materials | $24,182 | $23,476 |
| Utilities | $22,356 | $22,674 |
| Fixed costs: | ||
| Administration | $63,450 | $65,500 |
| Rent | $65,317 | $63,904 |
(Points : 30)
4.
McMullen Co. manufactures automatic door openers. The company uses 15,000 electronic hinges per year as a component in the assembly of the openers. You have been engaged by McMullen to assist with an evaluation of whether the company should continue producing the hinges or purchase them from an outside vendor.
The Accounting Department provided the following detail regarding the annual cost to produce electronic hinges.
| Direct materials | $54,000 |
| Direct labor | 60,000 |
| Variable manufacturing overhead | 36,000 |
| Fixed manufacturing overhead | 90,000 |
| Total costs | $240,000 |
The Procurement Department provided the following supplier pricing.
| Supplier A price per hinge | $11.00 |
| Supplier B price per hinge | $10.75 |
| Supplier C price per hinge | $10.50 |
The supplier pricing was obtained in response to a formal request for proposal (RFP). Procurement has determined these suppliers meet McMullen’s technical specifications and quality requirements.
For a custom paper on the above topic, place your order now!
What We Offer:
• On-time delivery guarantee
• PhD-level writers
• Automatic plagiarism check
• 100% money-back guarantee
• 100% Privacy and Confidentiality
• High Quality custom-written papers
