| Flexible Budget/schedule
1.Prepare a monthly flexible selling expense budget for Practer Company for sales volumes of $300,000, $400,000, and $600,000 based on the following data:
Sales commissions 4%
Sales manager's salary $70,000 per month
Advertising expense $75,000 per month
Shipping expense 1% of sales
Miscellaneous selling expense 2100 per month plus1/2% of sales
2.Trapp Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows:
August $100,000
September 185,000
October 225,000
The company expects to sell 40% of its merchandise for cash. Of the sales on account, one third are expected to be collected in the month of the sale and the remainder in the following month.
Prepare a schedule indicating cash collections of accounts receivable for August, September, and October.
3. Pnok Company has been purchasing a component, Part Q, for $21 a unit. Pnok is currently operatig at 70% of capacity and no significant increase in porduction is anticipated in the near future. The coss of manufacturing a unit of Part , determined by absorption costing methods, is estimated as follows:
Direct material $12.50
Direct labor 5.00
Variable factory overhead 1.25
Fixed factory overhead 3.15
Total 21.90
Prepare a differtential analysis report, dated March 12 of the current year, on the decsision to make or buy Part Q.
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