Preston, Inc. manufactures model airplane kits and projects production at 500, 420, 350, and 400 kits for the next four quarters. (Click the loon to view the manufacturing information) Prepare Preston'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 two decimal places. Round other amounts to the nearest whole number. Begin by preparing Preston's direct materials budget. Budgeted kits to be produced Direct materials (ounces) per k Direct materials needed for production Preston, Inc. Direct Materials Budget For the Year Ended December 31 First Second Quarter Quarter Plus Desired direct materials in ending inventory Total direct materials needed Less Direct materials in beginning inventory Budgeted purchases of direct materials Direct matenals cost per ounce Third Quarter Fourth Quarter Total F Question View

Preston, Inc. manufactures model airplane kits and projects production at 500, 420, 350, and 400 kits for the next four quarters. (Click the loon to view the manufacturing information) Prepare Preston'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 two decimal places. Round other amounts to the nearest whole number. Begin by preparing Preston's direct materials budget. Budgeted kits to be produced Direct materials (ounces) per k Direct materials needed for production Preston, Inc. Direct Materials Budget For the Year Ended December 31 First Second Quarter Quarter Plus Desired direct materials in ending inventory Total direct materials needed Less Direct materials in beginning inventory Budgeted purchases of direct materials Direct matenals cost per ounce Third Quarter Fourth Quarter Total F Question View

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter19: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 2CMA: Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing...

See similar textbooks

Similar questions

Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
Please use the information from this problem for these calculations. After grouping cost pools and estimating overhead and activities, Box Springs determined these rates: It estimates there will be five orders in the next year, and those jobs will involve: What is the total cost of the jobs?
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
Carlton, Inc. manufactures model airplane kits and projects production at 550, 420, 150, and 800 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 two decimal places. Round other amounts to the nearest whole number. Begin by preparing Carlton's direct materials budget. Direct materials (ounces) per kit Direct materials needed for production. Plus: Total direct materials needed Less: Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost direct materials purchases Carlton, Inc. Direct Materials Budget For the Year Ended December 31 First Second Quarter Quarter Third Quarter Fourth Quarter Total More info Direct materials are five ounces of plastic per kit and the plastic costs $3 per…
A company estimates its manufacturing overhead will be $525,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? When required, round your answers to nearest cent. A. Budgeted direct labor hours: 42,000 per direct labor hour B. Budgeted direct labor expense: $1,050,000 per direct labor dollar C. Estimated machine hours: 70,000 per machine hour
A company estimates its manufacturing overhead will be $1,080,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? When required, round your answers to nearest cent. A. Budgeted direct labor hours: 72,000 $fill in the blank 1 per direct labor hour B. Budgeted direct labor expense: $1,800,000 $fill in the blank 2 per direct labor dollar C. Estimated machine hours: 120,000 $fill in the blank 3 per machine hour
Ut Ultrasonic manufactures three ultrasound imaging systems: Avex, AvexII, and Mel. Overhead is allocated to each system based on standard direct material dollars in each system. The firm uses a flexible overhead budget to calculate the overhead rate for the coming year, where budgeted volume is based on expected (projected) direct material dollars. The following table summarizes operations for the year: Selling price Projected production (units) Standard direct labor per unit Standard direct materials per unit Actual units produced Total direct materials actually used Avex $7,800 1,200 $150 $2,600 1,400 $3,967,600 Avexl $10,700 650 $200 $3,300 530 $1,679,040 Mel $15,750 350 $420 $4,800 410 $2,027,040 Fixed manufacturing overhead was budgeted at $7.5 million, and variable overhead was budgeted at $0.30 per direct material dollar. In other words, each dollar spent on direct materials is expected to generate $0.30 of variable manufacturing overhead. Actual overhead incurred during the…
Sparkle Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2020. Machine setup-hours is the only driver of manufacturing overhead costs. Sparkle has a set up capacity of 2,220 hours. (Click the icon to view the information.) Calculate the manufacturing overhead costs budget (label it Schedule 5). Schedule 5: Manufacturing Overhead Costs Budget for the Year Ending December 31, 2020 Machine Setup Overhead Costs Total manufacturing overhead costs Data table 1. Quantity of lamps to be produced 2. Number of lamps to be produced per batch 3. Setup time per batch Variable cost = $70 per setup-hour Fixed cost = - $79,000 Knox 21,000 lamps 50 lamps/batch 3 hours/batch Ayer 12,000 lamps 50 lamps/batch 4 hours/batch X
Magnify Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available the year 2020. Machine setup-hours is the only driver of manufacturing overhead costs. Magnify has a set up capacity of 1,0 hours. (Click the icon to view the information.) Calculate the manufacturing overhead costs budget (label it Schedule 5). Schedule 5: Manufacturing Overhead Costs Budget for the Year Ending December 31, 2020 Machine Setup Overhead Costs Total manufacturing overhead costs Data table 1. Quantity of lamps to be produced 2. Number of lamps to be produced per batch 3. Setup time per batch Variable cost = $65per setup-hour Fixed cost $78,000 = Print Knox 21,000 lamps 50 lamps/batch 2 hours/batch Done Ayer 15,000 lamps 200 lamps/batch 3 hours/batch X
Light Up Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2020. Machine setup-hours is the only driver of manufacturing overhead costs. Light Up has a set up capacity of 960 hours. (Click the icon to view the information.) Calculate the manufacturing overhead costs budget (label it Schedule 5). Schedule 5: Manufacturing Overhead Costs Budget for the Year Ending December 31, 2020 Machine Setup Overhead Costs Total manufacturing overhead costs
Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assemble. the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates t only one customer's lean cell for the coming year. For the year, projected labor and overhead was $3,120,000 and materials costs were $31 per unit. Planned production included 5,120 hours to produce 16,000 motor drives. Actual production for August was 1,870 units, and motor drives shipped amounted to 1,480 units. Conversion costs are applied based on units of production From the foregoing information, determine the cell conversion cost rate. a. $2,108.11 b. $195.00 c. $1,668.45 d. $609.38