Scholastic Furniture, Incorporated, manufactures a variety of desks, chairs, tables, and shelf units that are sold to public school systems throughout the Midwest. The controller of the company's Desk Division is currently preparing a budget for the second quarter of the year. The following sales forecast has been made by the division's sales manager. April May June 15,500 desk-and-chair sets 17,500 desk-and-chair sets 20,500 desk-and-chair sets Each desk-and-chair set requires 11 board feet of pine planks and 1.5 hours of direct labor. Each set sells for $50. Pine planks cost $.50 per board foot, and the division ends each month with enough wood to cover 10 percent of the next month's production requirements. The division incurs a cost of $22 per hour for direct-labor wages and fringe benefits. The division ends each month with enough finished-goods inventory to cover 20 percent of the next month's sales. Required: Complete the following budget schedules. 1. Sales budget. 2. Production budget (in sets). 3. Raw-material purchases. 4. Direct-labor budget.
Scholastic Furniture, Incorporated, manufactures a variety of desks, chairs, tables, and shelf units that are sold to public school systems throughout the Midwest. The controller of the company's Desk Division is currently preparing a budget for the second quarter of the year. The following sales forecast has been made by the division's sales manager. April May June 15,500 desk-and-chair sets 17,500 desk-and-chair sets 20,500 desk-and-chair sets Each desk-and-chair set requires 11 board feet of pine planks and 1.5 hours of direct labor. Each set sells for $50. Pine planks cost $.50 per board foot, and the division ends each month with enough wood to cover 10 percent of the next month's production requirements. The division incurs a cost of $22 per hour for direct-labor wages and fringe benefits. The division ends each month with enough finished-goods inventory to cover 20 percent of the next month's sales. Required: Complete the following budget schedules. 1. Sales budget. 2. Production budget (in sets). 3. Raw-material purchases. 4. Direct-labor budget.
Essentials of Business Analytics (MindTap Course List)
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ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
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Transcribed Image Text:Scholastic Furniture, Incorporated, manufactures a variety of desks, chairs, tables, and shelf units that are sold to public school
systems throughout the Midwest. The controller of the company's Desk Division is currently preparing a budget for the second quarter
of the year. The following sales forecast has been made by the division's sales manager.
April
May
June
15,500 desk-and-chair sets
17,500 desk-and-chair sets
20,500 desk-and-chair sets
Each desk-and-chair set requires 11 board feet of pine planks and 1.5 hours of direct labor. Each set sells for $50. Pine planks cost $.50
per board foot, and the division ends each month with enough wood to cover 10 percent of the next month's production requirements.
The division incurs a cost of $22 per hour for direct-labor wages and fringe benefits. The division ends each month with enough
finished-goods inventory to cover 20 percent of the next month's sales.
Required:
Complete the following budget schedules.
1. Sales budget.
2. Production budget (in sets).
3. Raw-material purchases.
4. Direct-labor budget.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3 Required 4
Direct-labor budget:
Note: Do not round intermediate values. Round "Direct labor hours per set" to 1 decimal place.
April
May
June
Planned production (sets)
15,900
Direct-labor hours per set
1.5
Direct-labor hours required
Cost per hour
23,850
0
$
22
Planned direct-labor cost
$
524,700 $
$
0
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