Rubic_Print_Format Course CodeClass CodeAssignment TitleTotal Points BUS-600BUS-600-O500Topic 6 Problems and Cases20.0 CriteriaPercentageUnsatisfactory (0.00%)Less Than Satisfactory...

1
    (A)
    University motor pool Budget report for April
    Particulars    Monthly Budget     April Actual    Over/Under
    Gasoline    1500    1720    220
    Oil, minor, Parts    469    550    81
    Outside repairs    400    495    95

    Insurance    1600    1600    0
    Salaries    7500    7500    0
    Depreciation    5867    5867    0
    Total    17336    17732    396
    No. of Automobiles    16    16    
    Actual Miles    31250    35000    
    Cost Per mile    0.555    0.507    
    Working:-
    Gasoline: (31250 miles/25 mil/ gal) * 1.20 per gallon =$1,500                1500
    Oil, etc = 31250 miles * 0.015 per mile = $469                469
    Outside repairs : 300 per auto * 16 autos /12 months = $400                400
    Insurance = Annual Cost for one auto = 18000/15 autos = $1200 per auto                1200
    Annual Cost for 16 autos = 16*1,200 = $19,200                19200
    Monthly cost = 19200/12 = $1,600                1600
    Salaries and Benefits = No change from present budget ($90,000/12=$1,600)                7500
    Depreciation = Annual depreciation per auto = $66,000/ 15 autos = $4,400 per auto                4400
    Annual depreciation for 16 autos = 4,400/auto *16 = $70,400                70400
    Monthly depreciation = $70,400/12= $5,867                5867
    (B)
    Outside automobile repairs are a function of the use of the automobile over the lifetime. These repair occur irregularly over the year and the life of the car. Therefore the use of 1/12 of the estimated annual outside repair costs adjusted for the no. of cars in operation during a month would appear to be more reasonable.
2
    Operating Budget
    Particulars    1st Quarter    2nd Quarter
    Sales    140000    280000
    Cost of Goods sold (60%* Sales)    84000    168000
    Gross Margin    56000    112000
    Operating Expenses    76075    105475
    Operating Income (loss)    -20075    6525
    Particulars    1st Quarter    2nd Quarter
    Fixed Selling Expenses    25000    25000
    Fixed Administrative Exp    18550    18550
    Depreciation    3125    3125
    Bad Debts (2% of Sales)    2800    5600
    Variable (14% of Sales)    19600    39200
    (5% of Sales)    7000    14000
    Total    76075    105475
3
    Operating Budget
     Particulars      1st Quarter      2nd...