Prepare the direct-labor budget (in dollars) for 20x0. Finished-goods inventories (in units):Expected January 1, Desired December 31,20x020x023,0009,500ProductLight coilHeavy coilProduction overhead:Overhead Cost ItemPurchasing and material handlingDepreciation, utilities, and inspectionShippingGeneral production overhead28,00010,500Activity-Based Budget Rate$ 0.80$ 7.00$ 2.00$ 5.00per pound of sheet metal and copperwire purchasedper coil produced (either type)per coil shipped (either type)per direct-labor hour Vista Electronics, Incorporated, manufactures two different types of coils used in electric motors. In the fall of the currentyear, Erica Becker, the controller, compiled the following data.• Sales forecast for 20x0 (all units to be shipped in 20x0):Units58,00038,000●●ProductLight coilHeavy coilRaw-material prices and inventory levels:Expected Inventories,January 1, 20x036,000 Pound33,000 Pound5,800 unitsRa MaterialSheet metalCopper wirePlatformUse of raw material:PriceProductLight coilHeavy coilFinished-goodsProductLight coilHeavy coil$ 280380Raw MaterialSheet metalCopper wirePlatformDirect-labor requirements and rates:Amount Used per UnitLight Coil4 Pound2 PoundHours per Unit35inventories (in units):Desired Inventories,December 31, 20x040,000 Pound36,000 Pound6,800 units20x023,0009,500Heavy Coil5 Pound3 Pound2 unitRate per Hour$ 1520Expected January 1, Desired December 31,20x028,00010,500AnticipatedPurchase Price$1584

The budget is prepared by the management on the basis of past experience. On the basis of the…

Answered: Prepare the direct-labor budget (in…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 19P

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Required information[The following information applies to the questions displayed below.]Shadee Corp. expects to sell 630 sun visors in May and 410 in June.Each visor sells for $24. Shadee’s beginning and ending finishedgoods inventories for May are 75 and 45 units, respectively. Endingfinished goods inventory for June will be 60 units.!Each visor requires a total of $4.00 in direct materials that includes an adjustableclosure that the company purchases from a supplier at a cost of $1.50 each. Shadeewants to have 31 closures on hand on May 1, 23 closures on May 31, and 20 closureson June 30. Additionally, Shadee’s fixed manufacturing overhead is $700 per month,and variable manufacturing overhead is $1.75 per unit produced. Each visor takes 0.80direct labor hours to produce and Shadee pays its workers $8 per hour.Additional information:Selling costs are expected to be 8 percent of sales.Fixed administrative expenses per month total $1,300.Required:Determine Shadee's budgeted selling and…
Required information [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 500 sun visors in May and 360 in June. Each visor sells for $19. Shadee's beginning and ending finished goods inventories for May are 60 and 55 units, respectively. Ending finished goods inventory for June will be 70 units. Each visor requires a total of $3.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 30 closures on hand on May 1, 15 closures on May 31, and 26 closures on June 30 and variable manufacturing overhead is $2.00 per unit produced. Suppose that each visor takes 0.40 direct labor hours to produce and Shadee pays its workers $7 per hour. Additional information: Selling costs are expected to be 12 percent of sales. Fixed administrative expenses per month total $1,300. Required: Complete Shadee's budgeted income statement for the months of May and June. (Note:…
Required information [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 520 sun visors in May and 350 in June. Each visor sells for $25. Shadee's beginning and ending finished goods inventories for May are 70 and 60 units, respectively. Ending finished goods inventory for June will be 60 units. Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 30 closures on hand on May 1, 21 closures on May 31, and 23 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $1,300 per month, and variable manufacturing overhead is $1.75 per unit produced. Required: 1. Determine Shadee's budgeted cost of closures purchased for May and June. 2. Determine Shadee's budget manufacturing overhead for May and June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine…
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Jestions displayed below] Shadee Corp, expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadee's beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 60 units. on applies to Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30 and variable manufacturing overhead is $1.25 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour. Additional information: • Selling costs are expected to be 6 percent of sales. • Fixed administrative expenses per month total $1,200. Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $2.) (Do…
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