FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Hagos Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.84 direct labor-hours. The direct labor rate is $9.40 per direct labor-hour. The production budget calls for producing 2,100 units in June and 1,900 units in July. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months? *
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- 1arrow_forwardLight It Up, Inc. manufactures lamps. The production budget shows that Light It Up plans to produce 3,600 lamps in June and 2,800 lamps in July. Each lamp requires 0.50 direct labor hours in its production. Light It Up has a direct labor rate of $19 per direct labor hour. What is the total combined direct labor cost that Light It Up should budget for June and July? $60,800 $13,300 $30,400 $17,100arrow_forwardrever Ready Company expects to operate at 85% of productive capacity during May. The total manufacturing costs for May for the production of 3,900 batteries are budgeted as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total manufacturing costs The company has an opportunity to submit a bid for 2,000 batteries to be delivered by May 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during May or increase the selling or administrative expenses. $324,300 119,200 33,350 67,000 $543,850 What is the unit cost below which Forever Ready Company should not go in bidding on the government contract? Round your answer to two decimal places. per unitarrow_forward
- Each unit requires direct labor of 1.5 hours. The labor rate is $10.83 per hour and next year’s direct labor budget totals $732,156. How many units are included in the production budget for next year? Round to the nearest penny, two decimal places.arrow_forwardSunrise Poles manufactures hiking poles and is planning on producing 3,646 units in March and 4,395 in April. Each pole requires a half pound of material, which costs $1.17 per pound. The company’s policy is to have enough material on hand to equal 7% of the next month’s production needs and to maintain a finished goods inventory equal to 17% of the next month’s production needs. What is the budgeted cost of purchases for March? Round to the nearest penny, two decimal places.arrow_forwardEach unit requires direct labor of 1.5 hours. The labor rate is $11.86 per hour and next year’s direct labor budget totals $795,253. How many units are included in the production budget for next year? Round to the nearest penny, two decimal places.arrow_forward
- At the beginning of the period, the Cutting Department budgeted direct labor of $139,000, direct materials of $169,000 and fixed factory overhead of $13,400 for 7,400 hours of production. The department actually completed 11,300 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting? Round hourly rates to two decimal places. Round interim calculations to two decimal places. Round your final answer to the nearest dollar. a.$490,786 b.$483,706 c.$321,400 d.$328,462arrow_forwardPrepare a production budget for the first four months of the year. Cloud Shoes manufactures recovery sandals and is planning on producing 12,000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs $3.00 per yard. The company’s policy is to have enough material on hand to equal 15% of next month’s production needs and to maintain a finished goods inventory equal to 20% of the next month’s production needs. What is the budgeted cost of purchases for March?arrow_forwardIn Paige Company, direct labor is $20 per hour. The company expects to operateat 10,000 direct labor hours each month. In January 2014, direct labor totaling $204,000is incurred in working 10,400 hours. Prepare (a) a static budget report and (b) a fl exiblebudget report. Evaluate the usefulness of each report.arrow_forward
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