Find the direct labor budget, and manufacturing overhead budget for the year Prepare the direct labor budget. (Enter any hours as a decimal to two places, X.XX, and round all other amounts to the nearest whole number.)Carlton, Inc.Direct Labor BudgetFor the Year Ended December 31FirstSecondQuarterQuarterDirect labor hours needed for productionBudgeted direct labor costThirdQuarterFourthQuarterTotal Carlton, Inc. manufactures model airplane kits and projects production at 450, 620, 400, and 700 kits for the next four quarters.(Click the icon to view the manufacturing information.)Prepare Carlton's direct materials budget, direct labor budget, and manufacturing overhead budget for the year. Round the direct labor hours needed for production, budgeted overhead costs, and predetermined overhead allocation rate to twoRound other amounts to the nearest whole number.Begin by preparing Carlton's direct materials budget.Budgeted kits to be producedDirect materials (ounces) per kitDirect materials needed for productionCarlton, Inc.Direct Materials BudgetFor the Year Ended December 31FirstQuarterSecondQuarter4507SS3,1504343,5849102,67462073 $4,3402804,6204344,1863 S12,558 $ThirdQuarter8,022 S $ 12,55840072,800490Plus: Desired direct materials in ending inventoryTotal direct materials neededLess: Direct materials in beginning inventoryBudgeted purchases of direct materialsDirect materials cost per ounceBudgeted cost of direct materials purchasesPrepare the direct labor budget. (Enter any hours as a decimal to two places, X.XX, and round all other amounts to the nearest whole number.)3,290280FourthQuarter3,0103 $9,030 $70074,9002605,1604904,670***3 $14,010 $Total2,170715,19026015,45091014,540343,620More infoDirect materials are seven ounces of plastic per kit and the plastic costs $3 perounce. Indirect materials are considered insignificant and are not included in thebudgeting process. Beginning Raw Materials Inventory is 910 ounces, and thecompany desires to end each quarter with 10% of the materials needed for thenext quarter's production. Carlton desires a balance of 260 ounces in RawMaterials Inventory at the end of the fourth quarter. Each kit requires 0.75 hours ofdirect labor at an average cost of $30 per hour. Manufacturing overhead isallocated using direct labor hours as the allocation base. Variable overhead is$0.80 per kit, and fixed overhead is $160 per quarter.PrintDoneX

The budgets are prepared on the basis of standard data and further it helps to estimate the costs to…

Prepare Carlton's direct materials budget, direct labor budget, and manufacturing overhead budget for the year. Round the direct labor hours needed for production, budgeted overhead costs, and predetermined overhead allocation rate to Round other amounts to the nearest whole number. Begin by preparing Carlton's direct materials budget. Budgeted kits to be produced Direct materials (ounces) per kit Direct materials needed for production Carlton, Inc. Direct Materials Budget For the Year Ended December 31 First Quarter Desired direct materials in ending inventory Plus Total direct materials needed Less Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials purchases $ S 450 7 3,150 434 3,584 910 2,674 3 Second Quarter 620 7 4,340 280 4,620 434 4,186 3 $ $ 8,022 $ 12,558 $ Third Quarter 400 7 2,800 490 3,290 280 3,010 3 3 $ 9,030 $ Fourth Quarter 700 7 4,900 260 5,160 490 4,670 3 S 14,010 $ Total 2,170 7 15,190 260 15,450 910 14,540 3 43,620 More info Direct materials are seven ounces of plastic per kit and the plastic costs $3 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 910 ounces, and the company desires to end each quarter with 10% of the materials needed for the next quarter's production. Carlton desires a balance of 260 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.75 hours of direct labor at an average cost of $30 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is. $0.80 per kit, and fixed overhead is $160 per quarter. Print - X Done

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3E: Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost...