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Cost Accounting Chap 6 Solution

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Cost Accounting Chap 6 Solution
CHAPTER 6
MASTER BUDGET AND RESPONSIBILITY ACCOUNTING

6-16 (15 min.) Sales budget, service setting.

1.
|McGrath & Sons |2009 Volume |At 2009 |Expected 2010 |Expected 2010 Volume |
| | |Selling Prices |Change in Volume | |
|Radon Tests |11,000 |$250 |+5% |11,550 |
|Lead Tests |15,200 |$200 |-10% |13,680 |

|McGrath & Sons Sales Budget |
|For the Year Ended December 31, 2010 |
| | | | |
| |Selling Price|Units Sold |Total Revenues |
|Radon Tests |$250 |11,550 |$2,887,500 |
|Lead Tests |$200 |13,680 | 2,736,000 |
| | | |$5,623,500 |

2.
|McGrath & Sons |2009 Volume |Planned 2010 Selling |Expected 2010 |Expected 2010 |
| | |Prices |Change in Volume |Volume |
|Radon Tests |11,000 |$250 |+5% |11,550 |
|Lead Tests |15,200 |$190 |-5% |14,440 |

|McGrath & Sons Sales Budget |
|For the Year Ended December 31, 2010 |
| | | | |
| |Selling Price|Units Sold |Total
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