Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following production volumes: Daytripper: 2,400 backpacks in July, 2,640 backpacks in August Excursion: 1,440 backpacks in July, 1,080 backpacks in August Each Daytripper backpack requires 1.0 hour of direct labor and each Excursion backpack requires 2.5 hours of direct labor. If the total budgeted labor for August is 6,000 hours, how much indirect labor did Teton budget? Select one: O a. 0 hours O O O O b. 660 hours c. 2,280 hours d. 1,860 hours e. None of these options are correct.

Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following production volumes: Daytripper: 2,400 backpacks in July, 2,640 backpacks in August Excursion: 1,440 backpacks in July, 1,080 backpacks in August Each Daytripper backpack requires 1.0 hour of direct labor and each Excursion backpack requires 2.5 hours of direct labor. If the total budgeted labor for August is 6,000 hours, how much indirect labor did Teton budget? Select one: O a. 0 hours O O O O b. 660 hours c. 2,280 hours d. 1,860 hours e. None of these options are correct.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...

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Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.
Lens & Shades sells sunglasses for $37 each and is estimating sales of 21,000 units in January and 19,000 in February. Each lens consist of 2.00 mm of plastic costing $2.50 per mm, 1.7 oz of dye costing $2.80 per ounce. and 0.50 hours direct labor at a labor rate of $18 per unit. Desired inventory levels are: Prepare a sales budget, production budget, direct materials budget for silicon and solution, and a direct labor budget.
The Silver Star Bicycle Company will manufacture both mens and womens models for its Easy-Pedal bicycles during the next two months. Management wants to develop a production schedule indicating how many bicycles of each model should be produced in each month. Current demand forecasts call for 150 mens and 125 womens models to be shipped during the first month and 200 mens and 150 womens models to be shipped during the second month. Additional data are as follows: Last month, the company used a total of 1,000 hours of labor. The companys labor relations policy will not allow the combined total hours of labor (manufacturing plus assembly) to increase or decrease by more than 100 hours from month to month. In addition, the company charges monthly inventory at the rate of 2% of the production cost based on the inventory levels at the end of the month. The company would like to have at least 25 units of each model in inventory at the end of the two months. (Hint: Define variables for production and inventory held in each period for each product. Then use a constraint to define the relationship between these: inventory from end of previous period + produced this period demand this period = inventory at end of this period.) a. Establish a production schedule that minimizes production and inventory costs and satisfies the labor-smoothing, demand, and inventory requirements. What inventories will be maintained and what are the monthly labor requirements? b. If the company changed the constraints so that monthly labor increases and decreases could not exceed 50 hours, what would happen to the production schedule? How much will the cost increase? What would you recommend?
Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following production volumes: Daytripper: 2,400 backpacks in July, 2,640 backpacks in August Excursion: 1,440 backpacks in July, 1,080 backpacks in August Each Daytripper backpack requires 1.0 hour of direct labor and each Excursion backpack requires 2.5 hours of direct labor. If the total budgeted labor for August is 6,000 hours, how much indirect labor did Teton budget? Select one: 00 a. 0 hours b. 660 hours c. 1,860 hours d. None of these options are correct. e. 2,280 hours
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Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following production volumes: Daytripper: 2,200 backpacks in July, 2,420 backpacks in August Excursion: 1,320 backpacks in July, 990 backpacks in August Each Daytripper backpack requires 1.0 hour of direct labor and each Excursion backpack requires 2.5 hours of direct labor. If the total budgeted labor for August is 5,500 hours, how much indirect labor did Teton budget? Select one: O a. None of these options are correct. O b. 1,705 hours 0 c. 0 hours 0 d. 2,090 hours O e. 605 hours
Blue Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials 9 square yards per unit @ $4/square yard Direct labor 1.2 DL hours per unit @$12/DL hour Throughout the year, Blue used 32,430 square yards of fabric in the process of making 3,450 tents. The company had originally planned to produce and sell 3,150 tents. In keeping with its desire to hold some DM Inventory at year-end, it purchased 34,380 square yards of canvas at $4.20 per square yard. Blue's DL cost totaled $52,026 for the 4,002 hours that were actually used. (a) Determine Blue's DM and DL price and efficiency variances; specify the amount and sign for all. Price variance $ Efficiency A variance DM A +A DL
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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 of material, which costs $3.00 per yard. The company’s policy is to have enough material on hand to equal 15% of next month’s production needs and to maintain a finished goods inventory equal to 20% of the next month’s production needs. PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e. 1,234). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345), except for any "per" amounts (units or dollars), which are rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56) Cost per Yard Desired Ending Inventory DM per Unit Units to be Produced Yards Needed for Production Required DM Yards Beginning Inventory Total Cost of DM Purchase Total DM Required Using the information above, along with the terms above, prepare a direct materials…
lens junction sells lenses for 45$ and each and is estimating sales of 15,000 units in january and 18000 units in february. each lens consist of 2 pounds of silicion costing $2.50 per pound, 3 ounces of solution costing $3 per ounce, and 30 minutes of direct labor at a rate of $18 per hour . prepare a sales budget, production budget, direct mateials budget for silicon
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