Question Details

Prepare a flexible budget for Big Bend Co. that shows a detailed budget 


1.Big Bend Co. fixed budget for the year is shown

Sales (50,000 units)……………………….		$1,300,000
Cost of goods sold:		
Direct materials……………………………	$150,000	
Direct labor…………………………………	   450,000	
Overhead (include $2 per unit variable overhead)……….	240,000	840,000
Gross profit……………………………		$460,000
Selling expenses:		
sales commissions (all variables)…………….	60,000	
Rent ( all fixed)…………………………..	40,000	
Insurance ( all fixed)…………………………..	35,000	
General and administrative expenses:		
salaries( all fixed)…………………………..	72,000	
rent( all fixed)…………………………..	54,000	
Depreciation ( all fixed)…………………………..	31,000	   292,000
Net Income from operations……………………		$ 168,000

below:
Prepare a flexible budget for Big Bend Co. that shows a detailed budget for its actual sales volume of
42,000 units. Use the contribution margin format.


2.Jacques Company planned to use 18,000 pounds of material costing $2.50 per pound to make 4,000
units of its product. In actually making 4,000 units, the company used 18,800 pounds that cost $2.54 per
pound. Calculate the direct materials price variance.




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help