Required: Prepare the company ' s cash budget for November in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance( Points: 25) Question 5.5.( TCO F) The following overhead data are for a department of a large company. Actual Costs Incurred Static Budget Activity level( in units) 360 340 Variable costs: Indirect materials $ 4,182 $ 4,148 Electricity $ 2,536 $ 2,414
Fixed costs: Administration $ 6,540 $ 6,500 Rent $ 6,310 $ 6,400 Required: Construct a flexible budget performance report that would be useful in assessing how well costs were controlled in this department.( Points: 25)
Question 6.6.( TCO H) McMullen Co. uses 10,000 units of Part X each year as a component in the assembly of one of its products. The company is presently producing Part X internally at a total cost of $ 125,000 as follows.
Direct materials $ 40,000 Direct labor 30,000 Variable manufacturing overhead 25,000 Fixed manufacturing overhead 30,000 Total costs $ 125,000 An outside supplier has offered to provide Part X at a price of $ 10 per unit. If McMullen stops producing the part internally, one third of the fixed manufacturing overhead would be eliminated.
Required: Prepare a make-or-buy analysis showing the annual advantage or disadvantage of accepting the outside supplier ' s offer. Please state clearly whether the part should be made or bought and share your work.( Points: 30)
Question 7.7.( TCO B) Buckhorn Corporation bases its predetermined overhead rate on the estimated machine hours for the upcoming year. Data for the upcoming year appear below.