Roughly 25 percent of the firm’s customers take the discount, 65 percent pay within thirty days, and 10 percent pay late (about sixty days after the invoice date). The firm presently has a cash balance of $300,000 and wants to maintain a minimum cash balance of $300,000. Additional borrowing necessary to maintain that minimum balance is estimated in the final section of Table 1 (attached worksheet). The Cash surplus or Loan requirement line on Alpine Wear's cash budget shows that loans are required from January to April, and surpluses are expected during May and June. Specific amounts are showed as the table below.
April Company makes collections on sales according to the following schedule: --30% in the month of sale --60% in the month following sale --8% in the second month following sale The following sales are expected: [pic] Cash collections in March are budgeted to be: A. $110,000 B. $110,800 C. $105,000 D. $113,000 6. A continuous (or
Case Report: LL Bean Case Thibault Faramarzi Section 22 1) L.L. Bean uses several different calculations in order to determine the number of units of a item it should stock. It first freezes on the 1st May of each year a forecast for its demand for the next season. This figure is a result of a consensus between the product people, buyers and inventory managers. Once the predicted demand is frozen, L.L.
Questions 1. According to ValueLine estimates in Figure 1, James River’s expected annual dividend growth rate from the 91–93 to 97–99 period is 5.50%, and the next dividend (1995) is expected to be $0.60. Assume that the required return for James River was 8.36% on January 1 1995 and that the 5.50% growth rate was expected to continue indefinitely. a. Based on the Constant Growth Rate or Gordon Model, what was James River’s price at the beginning of 1995?
| B | Direct labor. | C | Variable overhead. | D | Variable overhead. | 3. | On the Schedule of Cost of Goods Manufactured, the final Cost of Goods Manufactured figure represents: | A | the amount of cost charged to Work in Process during the period.
Sales Budget The Master budget is developed with Sales Budget as the base i.e. the first step involves the Sales budget as other budgets cannot be prepared without an estimate of sales. The two main components of Sales Budget are: • Forecasted Sales Volume • Budgeted Selling Price Production Budget Production Budget indicates the planned production level of the organization for the given time period. Direct Material Purchase Budget The amount of direct materials purchased depends on the production level and amount of ending inventory required. Direct Labour Budget The direct labor budget depends on the amount of production for the specific time period.
Presented below are the monthly factory overhead cost budget (at normal capacity of 5,000 units or 20,000 direct labor hours) and the production and cost data for a month. The predetermined overhead rate is based on normal capacity. [pic] .:. Required: 1. Assuming that variable costs will vary in direct proportion to the change in volume, prepare a flexible budget for production levels of 80%, 90%, and 110% of normal capacity.
The overall process of the budget took about 8 months which is from May until completion in December. The Company may implement a rolling budget where is help to constantly look to the future and revise our estimates. 2. According to Exhibit 1, the Aluminium Can Division of Vershire Company is headed by a General Manager. There are two line managers who are heading the
The part time employee has an average cost of $7.82 per hour. Chase Manhattan Bank must determine the minimum personnel costs while meeting hourly service demands and complying with the constraints established by the corporate office. (Render, et al, 2009, pp. 348-349). The minimum-cost schedule for Chase Manhattan Bank can be developed using an excel
The phase diagram is very similar to the WBS except that the detail of the work is spread out over a longer time period. To effectively analyze direct labor cost, you need to establish a model or standard rate. The standard rate is an estimate of what you expect the direct cost of labor will be under normal conditions. To accurately measure direct labor cost, you must include all expenditures, not just wages. Two primary components of a model is the projected cost of one hour of direct labor and the number of labor hours required to produce one unit.