EXERCISE 8-15 Direct Labor and Manufacturing Overhead Budgets [@ LO8-5, Q LO8-6] The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 12,000 10,000 13,000 14,000 Each unit requires 0.2 direct labor-hours and direct laborers are paid $12.00 per hour. In addition, the variable manufacturing overhead rate is $1.75 per direct labor-hour. The fixed manufacturing overhead is $86,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $23,000 per quarter. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted ntch the numher of hours reguired to produce the forecasted number of units produced.

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Exercise 8-16 (Algo) Direct Materials and Direct Labor Budgets [LO8-4, LO8-5] The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:     1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 20,000 23,000 22,000 21,000   In addition, 40,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $7,800.   Each unit requires 8 grams of raw material that costs $1.80 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 5,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.40 direct labor-hours and direct laborers are paid $11.50 per hour.   Required: 1. and 2.…

Week 11 Absorption Costing & Marginal Costing Profit Statement Answer all questions Fantasia Berhad plans to manufacture a new product next month. The expected average monthly sales and production volumes are 3,000 units. Budgeted cost per unit of a product based on the average monthly production volume is as follows: Direct material Direct labour (RM16 per hour) Variable production overhead RM 110 Required: 48 Other information are as follows: Selling Price per unit Variable selling and administration overhead Fixed selling and administration overhead Fixed production overhead Additional information: i. Fixed selling and administration overhead is to be treated as period cost in the monthly Income Statement. b. 24 182 ii. The budgeted production for the first month is 3,720 units but only 2,680 units are expected to be sold. RM400 10% of selling price RM168,000 per month RM126,000 per month Prepare the Statement of Profit or Loss of Fantasia Berhad for the first month using the…

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EXERCISES Exercise 1 Jenner Company developed its annual manufacturing overhead budget for its master budget for 2008 as follows: Expected annual operating capacity Variable overhead costs 120,000 Direct Labor Hours Indirect labon Indirect materials $420,000 90,000 30,000 _540,000 Factory supplies Total variable Fixed overhead costs Depreciation Supervision Property taxes Total fixed 180,000 120,000 96,000 396,000 $936,000 Total costs The relevant range for monthly activity is expected to be between 8,000 and 12,000 direct labor hours . Instructions Prepare a flexible budget for a monthly activity level of 8,000 and 9,000 direct labor hours. Exercise 2 Fagan Company uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor $5.00 Indirect materials Maintenance Utilities 2.50 50 30 Fixed overhead costs per month are: Supervision Insurance $600 200 Property taxes Depreciation 300 900 The…

Question 6 View Policies Current Attempt in Progress Crane Company determines that 59000 pounds of direct materials are needed for production in July. There are 3700 pounds of direct materials on hand at July 1 and the desired ending inventory is 3300 pounds. If the cost per unit of direct materials is $3, what is the budgeted total cost of direct materials purchases? ort $175800 O $180600. O $178200. O $173400. ea Chp ins prt sc fho 12 home delete % 5 & 7 backspace lock T P hom G H K enter B pause t shift ctri NM N

Required information SB Exercise E8-5 to E8-10 [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 520 sun shades in May and 340 in June. Each shade sells for $149. Shadee's beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades. E8-7 (Algo) Preparing Direct Labor and Manufacturing Overhead Budgets [LO 8-3d] Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $12 per hour. Additionally, Shadee's fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $14 per unit produced. Required: 1. Prepare Shadee's direct labor budget for May and June. 2. Prepare Shadee's manufacturing overhead budget for May and June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare Shadee's manufacturing overhead budget for May and June. May…

Question 2 Jewel Ltd manufactures four products, A, B, C and D, and has produced the following budgeted figures for the forthcoming period:  Demand (units) 8,000 2,000 3,600 3,000 Income £ 40,000 20,000 27,000 38,400 Costs £ Material 12,000 8,000 12,000 12,000 Labour 12,000 6,000 8,000 15,000 Variable Overhead 2,000 1,000 1,700 2,400 Fixed Overhead 6,000 4,000 5,000 6,000 Labour is paid at £10 per hour and is limited to 3,800 hours for the period. Required: Calculate and determine the ranking with labour hours as the limiting factor of production.

Waterway Industries budgeted manufacturing costs for 50000 tons of steel are as follows: Fixed manufacturing costs $45000 per month Variable manufacturing costs $22.00 per ton of steel Waterway produced 55000 tons of steel during March. What is the flexible budget for total manufacturing costs for March? $1260000 O $1255000 $1210000 O $1145000