16) Argyle Company is preparing the operating budget for the first quarter of 2012. They forecast sales of $50,000 in January, $60,000 in February, and $70,000 in March. Variable and fixed expenses are as follows:
Variable:Power cost (40% of Sales)
Miscellaneous expenses (5% of Sales)
Fixed:Salary expense: $8,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,200 per month
Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1,000 per month
How much is the total operating expense for January?
A) $38,500
B) $47,500
C) $41,700
D) $43,000
17) Argyle Company is preparing the operating budget for the first quarter of 2012. They forecast sales of $50,000 in January, $60,000 in February, and $70,000 in March. Variable and fixed expenses are as follows:
Variable:Power cost (40% of Sales)
Miscellaneous expenses (5% of Sales)
Fixed:Salary expense: $8,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,200 per month
Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1,000 per month
How much is the total operating expense for February?
A) $38,500
B) $47,500
C) $41,700
D) $43,000
18) Argyle Company is preparing the operating budget for the first quarter of 2012. They forecast sales of $50,000 in January, $60,000 in February, and $70,000 in March. Variable and fixed expenses are as follows:
Variable:Power cost (40% of Sales)
Miscellaneous expenses (5% of Sales)
Fixed:Salary expense: $8,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,200 per month
Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1,000 per month
How much is the total operating expense for March?
A) $38,500
B) $47,500
C) $41,700
D) $43,000
19) Bartholomew Manufacturing Company is preparing the operating budget for the first quarter of 2012. They forecast sales of $50,000 in January, $60,000 in February, and $70,000 in March. Cost of goods sold is budgeted at 40% of Sales. Variable and fixed expenses are as follows:
Variable:Miscellaneous expenses : 20% of Sales
Fixed:Salary expense: $11,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,200 per month
Miscellaneous expenses/fixed portion: $3,300 per month
How much is the operating net income/(loss) for January?
A) $3,500
B) $1,450
C) ( $500)
D) $7,500
20) Bartholomew Manufacturing Company is preparing the operating budget for the first quarter of 2012. They forecast sales of $50,000 in January, $60,000 in February, and $70,000 in March. Cost of goods sold is budgeted at 40% of Sales. Variable and fixed expenses are as follows:
Variable:Miscellaneous expenses : 20% of Sales
Fixed:Salary expense: $11,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,200 per month
Miscellaneous expenses/fixed portion: $3,300 per month
How much is the operating net income/(loss) for February?
A) $3,500
B) $1,450
C) ($500)
D) $7,500
21) Bartholomew Manufacturing Company is preparing the operating budget for the first quarter of 2012. They forecast sales of $50,000 in January, $60,000 in February, and $70,000 in March. Cost of goods sold is budgeted at 40% of Sales. Variable and fixed expenses are as follows:
Variable:Miscellaneous expenses : 20% of Sales
Fixed:Salary expense: $11,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,200 per month
Miscellaneous expenses/fixed portion: $3,300 per month
How much is the operating net income/(loss) for March?
A) $3,500
B) $1,450
C) ($500)
D) $7,500
22) Caskill Company forecasts $40,000 of sales in January, $38,000 in February, $30,000 in March, and $32,000 in April. Cost of goods sold is budgeted at 75% of sales. Caskill should have inventory on hand at the end of each month equal to $5,000 plus 20% of the following month's cost of goods sold. How much are budgeted purchases for January?
A) $22,800
B) $27,300
C) $29,700
D) $24,900
23) Caskill Company forecasts $40,000 of sales in January, $38,000 in February, $30,000 in March, and $32,000 in April. Cost of goods sold is budgeted at 75% of sales. Caskill should have inventory on hand at the end of each month equal to $5,000 plus 20% of the following month's cost of goods sold.
How much are budgeted purchases for February?
A) $22,800
B) $27,300
C) $29,700
D) $24,900
24) Caskill Company forecasts $40,000 of sales in January, $38,000 in February, $30,000 in March, and $32,000 in April. Cost of goods sold is budgeted at 75% of sales. Caskill should have inventory on hand at the end of each month equal to $5,000 plus 20% of the following month's cost of goods sold.
How much are budgeted purchases for March?
A) $22,800
B) $27,300
C) $29,700
D) $24,900
25) Dahl Manufacturing is making its operating budget for the 4th quarter of 2012. Sales are forecast at $60,000 in October, $65,000 in November, and $70,000 in December. Cost of goods sold it 40% of sales. Expenses are budgeted as follows:
Variable:Miscellaneous:5% of sales
Fixed:Salary expense: $12,600 per month
Rent expense:$5,200 per month
Depreciation expense:$4,000 per month
Admin expense:$5,000 per month
How much are the total operating expenses in October?
A) $29,800
B) $30,300
C) $30,050
D) $29,990