Denominator-Level Capacity Concept Budgeted Fixed MOH per period Days of Production per period Hours of production per day Barrels per hour Theoretical capacity $28,000,000 360 24 540 Practical capacity $28,000,000 350 20 500 Normal capacity utilization $28,000,000 350 20 400 Master-Budget capacity for each half year: a)     January – June 2012 b)    July – December 2012

Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: Direct materials $1.65 Direct labor 0.60 Variable overhead 0.80 Fixed overhead 1.90     Total unit cost $4.95 For the coming year, Play-Disc expects to make 330,000 plastic discs, and to sell 311,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of $4.95. (There are no beginning or ending inventories of work in process.) Required: Question Content Area 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. If required, round your answers to the nearest cent. Play-DiscEnding Finished Goods Inventory BudgetFor the Coming Year Unit costs:     $- Select -   - Select - Overhead:     - Select -   - Select - Total cost per unit $fill in the blank 04d2fcfb606b005_9 Total ending inventory cost $fill in the blank 04d2fcfb606b005_10   Question Content Area 2. What…

Tucker Inc. needs 5kg of meat to make its dog treats per unit of product. Management wants materials on hand at the end of each month equal to 10% of the following month's production On March 31, 13,000 kg of material are on hand. Material cost is $0.40 per kg How much raw material needs to be purchased in April given the following production budget April May June July Production 26,000 46, 000 29, 000 101, 000 13, 000 140,000 153, 000 26,000

Blossom's Recording Studio rents studio time to musicians in two-hour blocks. Each session includes the use of the studio facilities, a digital recording of the performance, and a professional music producer/mixer. Anticipated annual volume is 1,000 sessions. The company has invested $1,963,500 in the studio and expects a return on investment of 20%. Budgeted costs for the coming year are as follows: Per Session Total Direct materials (tapes, CDs, etc.) $20 Direct labour. 380 Variable overhead 40 Fixed overhead $925,000 Variable selling and administrative expenses 30 Fixed selling and administrative expenses 475,000

Wildhorse's Recording Studio rents studio time to musicians in two-hour blocks. Each session includes the use of the studio facilities, a digital recording of the performance, and a professional music producer/mixer. Anticipated annual volume is 1,400 sessions. The company has invested $2,212,000 in the studio and expects a return on investment of 20%. Budgeted costs for the coming year are as follows: (a) Per Session Total Direct materials (tapes, CDs, etc.) $20 Direct labour 400 Variable overhead 45 Fixed overhead $1,330,000 Variable selling and administrative expenses 40 Fixed selling and administrative expenses 728,000 Your answer is correct. Determine the total cost per session. Total cost per session $ 1975 SUPPOR

Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: Direct materials $1.65 Direct labor 0.50 Variable overhead 0.75 Fixed overhead 1.90     Total unit cost $4.80 For the coming year, Play-Disc expects to make 380,000 plastic discs, and to sell 369,000 of them. Budgeted beginning inventory in units is 20,000 with unit cost of $4.80. (There are no beginning or ending inventories of work in process.) Required: 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. If required, round your answers to the nearest cent. Play-DiscEnding Finished Goods Inventory BudgetFor the Coming Year Unit costs:   Direct materials  $______ Direct labor _____ Overhead: _____ Budgeted variable overhead ______ Budgeted fixed overhead  ______ Total cost per unit $______ Total ending inventory cost $_____   2. What if sales increased to 379,000 discs? How would that…

Ruth, the owner of Crystal Clean, is planning for the next year. She uses the absorption method to determine the evaluation of employees and how much to increase their hourly wage. She has budgeted the following information: Variable operating expenses             $4    per unitFixed operating expenses               $211900    Variable manufacturing cost              $11    per unitFixed manufacturing cost              $253000    Units to be produced                        25300    unitsUnit selling price                               $31    per unit                                                           Year 1          Year 2 Beginning inventory (units)                     0            1400 Actual production (units)                 23800            25800 Sales volume (units)                        22400           26500 There were no price or efficiency variances for either year. Ruth writes off any fixed MOH volume variance directly to COGS. Calculate the gross margin for year 1.…