CHAPTER 6
MASTER BUDGET AND RESPONSIBILITY ACCOUNTING
6-16
(15 min.) Sales budget, service setting.
In 2014, Rouse & Sons, a small environmental-testing firm, performed 12,200 radon tests for
$290 each and 16,400 lead tests for $240 each. Because newer homes are being built with leadfree pipes, lead-testing volume is expected to decrease by 10% next year. However, awareness of radon-related health hazards is expected to result in a 6% increase in radon-test volume each year in the near future. Jim Rouse feels that if he lowers his price for lead testing to $230 per test, he will have to face only a 7% decline in lead-test sales in 2015.
Required:
1. Prepare a 2015 sales budget for Rouse & Sons assuming that Rouse holds prices at 2014
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3. We already see one example of a decision that Roletter’s management took based on the budgeted expenses—installing labor-saving machines ahead of wage increases. Roletter’s management should also continue to work with employees to increase labor productivity.
6-32
(30–40 min.) Revenue and production budgets.
(CPA, adapted) The Sabat Corporation manufactures and sells two products: Thingone and
Thingtwo. In July 2013, Sabat’s budget department gathered the following data to prepare budgets for 2014:
The following direct materials are used in the two products:
Projected data for 2014 for direct materials are:
Projected direct manufacturing labor requirements and rates for 2014 are:
Manufacturing overhead is allocated at the rate of $19 per direct manufacturing labor-hour.
Based on the preceding projections and budget requirements for Thingone and Thingtwo, prepare the following budgets for 2014:
Required:
1. Revenues budget (in dollars)
2. What questions might the CEO ask the marketing manager when reviewing the revenues budget? Explain
25. In a science fiction movie, an officer is implementing an experimental process to prevent a catastrophic geologic event affecting a primitive indigenous alien population. A crew of a starship vessel is willing to save him; however, environmental conditions prevent simple extraction. The commander refuses to let the crew extract the officer, proclaiming “the needs of the many outweigh the needs of the few, or in this case, one.” The commander’s conclusion is based on which moral theory?
Question 1: Using budget data, how many motors would have to be sold for Waltham Motors Division to breakeven?
The rise in revenue was rapid starting from the year of operations. The key period of business was from April to September were revenues were equal to 65% of total revenue as the product was seasonal. The basis of forecasting for the year 1981 & 1982 is the expectations of sales by Mr. Turner & Mr. Rose. It is given that total sales were $ 15.80 million in first half of year 1981 and the total sales in 1981 to reach $ 30 million. Profit after tax was expected to be $ 1 million for 1st half and we assumed for the next half, profit will be in proportion to first half & expected to be amounting to $ 0.90 million. For year 1982, the sales expectation by Mr. Rose was around more than $ 71 million &
In regards to the business itself, the steady decline in profits indicates that there is a problem. Their recent lack of ability to meet product release deadlines and their slow movement into cloud computing technologies is hurting their image as the “top player” in the market. Structurally, there are serious issues with how decisions are made within Celeritas. Boyer’s attitude about being the only one who makes big decisions is really hurting the company. He says that he listens to his SVPs, but in reality, he still does what he thinks is best, even if it doesn’t align with the SVP’s ideas. There needs to be more input and team decision making in order for things to run smoother. By Boyer
2. A top official of the government is presenting a case for the continued use of drone airplanes in military conflicts. The official states “Using drones during military surveillance missions is the right course of action because it saves soldiers’ lives.” What is the enthymeme in the official’s argument?
Just like everything else, women had to fight in order to be part of the jury. In 1870, Wyoming was the first to allow women to be juries. It was in 1957, when all women in the United States were able to be part of the jury. However only with federal court cases not state court, but this still did not stop clerks from refusing to call on women to be part of the jury. Women were still unable to be part of the jury during this time because of their gender. There was research conducted in the 1990’s that found women less aggressive than men and women tended to be more influenced by evidence than men.
In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.
Step 1: Construct a network diagram for the project. (NOTE: EF for activity H should be 19)
The following is the list of MAD statistics for each of the models you have estimated from time-series data:
We will assume that Number Name where name is not unique (i.e., there may be more than one “John Smith”, each with a different student number). Then the multivalued dependencies are:
II. This year for McGregor’s Ltd, the revenue from sales is increased by 7.5% which is greater than the retail average of 4.9%. McGregor believes that
4. Given Mr James charge to the senior vice president, how would you portray and assess sales and marketing initiatives, expenditures, and outcomes for fiscal 2004 and 2005? 5. What should Kelly Elizabeth propose in her fiscal 2006 sales and marketing plan and budget Astor Lodges Caase 1 4
3. Refer to the monthly sales forecasts given in the first Table. Assume that these amounts are realized and that the firm’s customers pay exactly as predicted.
a. Design the logic for a program that allows a user to enter 10 numbers, then
* Here you should include a simple table showing the years and the total sales for each year, along with a brief explanation of why sales are expected to rise, fall, change, or stay the same in certain years. Provide a brief explanation of the sales forecast, indicating why you expect sales to rise or fall during the planning horizon. Your explanation should be consistent with the trends and changes in sales found in your table: