Ch 8 EFILE - Chapter8 Exercise88(15minutes LavageRapide...

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Chapter 8 Flexible Budgets and Performance Analysis Exercise 8-8  (15 minutes) Lavage Rapide Planning Budget For the Month Ended August 31 Budgeted cars washed (q) .............................. 9,000 Revenue ($4.90q) ........................................... $44,10 0 Expenses: Cleaning supplies ($0.80q) ........................... 7,200 Electricity ($1,200 + $0.15q) ......................... 2,550 Maintenance ($0.20q) .................................. 1,800 Wages and salaries ($5,000 + $0.30q) ........ 7,700 Depreciation ($6,000) ................................... 6,000 Rent ($8,000) ............................................... 8,000 Administrative expenses ($4,000 + $0.10q).       4,900     Total expense ..................................................   38,150     Net operating income ...................................... $      5,950    
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Exercise 8-9  (15 minutes) Lavage Rapide Flexible Budget For the Month Ended August 31 Actual cars washed (q) .................................... 8,800 Revenue ($4.90q) ........................................... $43,12 0 Expenses: Cleaning supplies ($0.80q) ........................... 7,040 Electricity ($1,200 + $0.15q) ......................... 2,520 Maintenance ($0.20q) .................................. 1,760 Wages and salaries ($5,000 + $0.30q) ........ 7,640 Depreciation ($6,000) ................................... 6,000 Rent ($8,000) ............................................... 8,000 Administrative expenses ($4,000 + $0.10q).       4,880     Total expense ..................................................   37,840     Net operating income ...................................... $      5,280     8-2
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Exercise 8-13  (10 minutes) Wyckam Manufacturing Inc. Planning Budget for Manufacturing Costs For the Month Ended June 30 Budgeted machine-hours (q) ........ 5,000 Direct materials ($4.25q) .............. $21,250 Direct labor ($36,800) ................... 36,800 Supplies ($0.30q) ......................... 1,500 Utilities ($1,400 + $0.05q) ............. 1,650 Depreciation ($16,700) ................. 16,700 Insurance ($12,700) .....................   12,700     Total manufacturing cost .............. $90,600 8-4
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  Exercise 8-15  (20 minutes) Via Gelato Revenue and Spending Variances For the Month Ended June 30 Flexible  Budget Actual  Results Revenue  and  Spending  Variances Liters (q) ....................................... 6,200 6,200 Revenue ($12.00q) ....................... $74,400 $71,540 $2,860 U Expenses: Raw materials ($4.65q) .............. 28,830 29,230 400 U Wages ($5,600 + $1.40q) .......... 14,280 13,860 420 F Utilities ($1,630 + $0.20q) .......... 2,870 3,270 400 U Rent ($2,600) ............................. 2,600 2,600 0 Insurance ($1,350) ..................... 1,350 1,350 0 Miscellaneous ($650 + $0.35q)..       2,820           2,590             230     F Total expense ...............................   52,750       52,900             150     U Net operating income ................... $21,650 $18,640 $3,010 U Exercise 8-17  (45 minutes) 1. The planning budget based on 3 courses and 45 students appears  below: Gourmand Cooking School Planning Budget For the Month Ended September 30 Budgeted courses (q 1 ) ................................................. 3 Budgeted students (q 2 ) ................................................ 45 Revenue ($800q 2 ) ........................................................ $36,00 0 Expenses: 8-5
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Instructor wages ($3,080q 1 ) ...................................... 9,240 Classroom supplies ($260q 2 ) .................................... 11,700 Utilities ($870 + $130q 1 ) ............................................ 1,260 Campus rent ($4,200) ............................................... 4,200 Insurance ($1,890) .................................................... 1,890 Administrative expenses ($3,270 + $15q 1  +$4q 2 ) .....       3,495     Total expense ..............................................................   31,785     Net operating income .................................................. $      4,215     2. The flexible budget based on 3 courses and 42 students appears below: Gourmand Cooking School Flexible Budget For the Month Ended September 30 Actual courses (q 1 ) ...................................................... 3 Actual students (q 2 ) ..................................................... 42 Revenue ($800q 2 ) ........................................................ $33,60 0 Expenses: Instructor wages ($3,080q 1 ) ...................................... 9,240 Classroom supplies ($260q 2 ) .................................... 10,920 Utilities ($870 + $130q 1 ) ............................................ 1,260 Campus rent ($4,200) ............................................... 4,200 Insurance ($1,890) .................................................... 1,890 Administrative expenses ($3,270 + $15q 1  +$4q 2 ) .....       3,483     Total expense ..............................................................   30,993     Net operating income .................................................. $      2,607     8-6
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Exercise 8-17  (continued) 3. The flexible budget performance report for September appears below: Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Plannin Budget Activity  Variances Flexibl Budget Revenue  and  Spending 
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