Units produced Units sold WILDHORSEMOTORS DIVISION Income Statement For the Year Ended 2022 Variable Costing 240,000 || 210,000
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![Units produced
Units sold
WILDHORSEMOTORS DIVISION
Income Statement
For the Year Ended 2022
Variable Costing
240,000
210,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2880ea67-6b22-470e-ad20-d2e155929490%2F4b2fb3a8-ad5b-4786-a717-b0e11c90a4ca%2Faylxe2q_processed.jpeg&w=3840&q=75)
![Wildhorse Motors is a division of Wildhorse Products Corporation. The division manufactures and sells an electric switch used in a
wide variety of applications. During the coming year, it expects to sell 210,000 units for $8.00 per unit. Nancy Jackson is the division
manager. She is considering producing either 210,000 or 240,000 units during the period. Other information is as follows:
Division Information for 2022
Beginning inventory
Expected sales in units
Selling price per unit
Variable manufacturing cost per unit
Fixed manufacturing cost (total)
Fixed manufacturing overhead costs per unit
Based on 210,000 units
Based on 240,000 units
Manufacturing cost per unit
Based on 210,000 units
Based on 240,000 units
Variable selling and administrative expenses
Fixed selling and administrative expenses (total)
0
210,000
$8.00
$2.30
$504,000
$2.40 per unit ($504,000+210,000)
$2.10 per unit ($504,000+240,000)
$4.70 per unit ($2.30 variable+ $2.40 fixed)
$4.40 per unit ($2.30 variable $2.10 fixed)
$0.35 per unit
mes
$12,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2880ea67-6b22-470e-ad20-d2e155929490%2F4b2fb3a8-ad5b-4786-a717-b0e11c90a4ca%2Fruqf9j_processed.jpeg&w=3840&q=75)
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- Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid 28,000 per year and is able to process 4,000 purchase orders. Last year, 17,800 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. 2. Calculate, in terms of purchase orders, the: a. total activity availability b. unused capacity 3. Calculate the dollar cost of: a. total activity availability b. unused capacity 4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for 14,000? How many purchase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?Two articles A and B are manufactured in a department. Sales for the year 2021 were planned as follows: Product 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter (Units) (Units) (Units) (Units) Product 50,000 60,000 65,000 75,000 A Product 25,000 22,500 20,000 19,000 B Selling price were sh. 40 per unit for A and sh. 20 per unit for B respectively. Average sales return is 5 % of sales. What is the annual sales budget for the year 2021? Select one: Sh 11,730,000 O Sh 11,143,500 Sh 9,500,000 O Sh 10,750,000Howard Temple, Inc., expects to sell 20,000 pool cues for $12.00 each. Direct materials costs are $2.00, direct manufacturing labor is $4.00, and manufacturing overhead is $0.80 per pool cue. The following inventory levels apply to 2020: Beginning Inventory Ending Inventory Direct materials 24,000 units 24,000 units Work-in-Process Inventory 0 units O units Finished Goods Inventory 2,000 units 2,500units How many pool cues need to be produced in 2020? 22,500 cues 022,000 cues O20,500 cucs 19.500 cues
- Two products A and B are manufactured in a department. Sales for the year 2020 were planned as follows: Product Quarter 1 Quarter 2 Quarter 3 Quarter 4 8000 10000 11000 14000 6000 8000 7500 5500 Selling prices in Quarter 1 were estimated as OMR 20 per unit for A and OMR 30 for B respectively. Average sales return are 5% of Sales. According to these estimates, which of the following is estimated Sales (OMR) in Quarter 3 for Product A?Two products A and B are manufactured in a department. Sales for the year 2020 were planned as follows: Product Quarter 1 Quarter 2 Quarter 3 Quarter 4 8000 10000 11000 14000 B 6000 8000 7500 5500 Selling prices in Quarter 1 were estimated as OMR 20 per unit for A and OMR 30 for B respectively. Average sales return are 5% of Sales . According to these estimates, which of the following is estimated Sales (OMR) in Quarter 3 for Product A? Select one: O a. 185600 O b. 254050 O c. The correct answer not available O d. 209000 e. 219600During the first calendar quarter of 2016, Clinton Corporation is planning to manufacture a new product and introduce it in two regions. Market research indicates that sales will be 10,000 units in the urban region at a unit price of $53 and 9,000 units in the rural region at $48 each. Because the sales manager expects the product to catch on, he has asked for production sufficient to generate a 8,000-unit ending inventory. The production manager has furnished the following estimates related to manufacturing costs and operating expenses: Variable Fixed (per unit) (total) Manufacturing costs: Direct materials A (4 lb. @ $3.15/lb.) $12.60 - B (2 lb. @ $4.65/lb.) 9.30 - Direct labor (0.5 hours per unit) 7.50 - Manufacturing overhead: Depreciation - $7,650 Factory supplies 0.90 4,500 Supervisory salaries - 28,800 Other 0.75 22,950 Operating expenses:…
- Crane Ltd. estimates sales for the second quarter of 2022 will be as follows. Month Units April 3,190 May 3,290 June 3,060 The target ending inventory of finished products is as follows. March 31 2,520 April 30 2,700 May 31 2,680 June 30 3,000 Two units of materials are required for each unit of finished product. Production for July is estimated at 3,310 units to start building inventory for the fall sales period. Crane’s policy is to have an inventory of raw materials at the end of each month equal to 50% of the following month’s production requirements.Raw materials are expected to cost $4 per unit throughout the period.Calculate the May raw materials purchases in dollars.Osborne Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows: The data from the table are as follows: # of planters to be sold January: 3,400 February: 3,800 March: 3,300 April: 4,900 May: 4,600. Inventory at the start of the year was 850 planters. The desired inventory of planters at the end of each month in the upcoming year should be equal to 25% of the following month’s budgeted sales. Each planter requires three pounds of polypropylene (a type of plastic). The company wants to have 20% of the polypropylene required for next month’s production on hand at the end of each month. The polypropylene costs $0.20 per pound. Requirements Prepare a production budget for each month in the first quarter of the year,…Cherboneau Novelties produces drink coasters (among many other products). During the current year (year 0), the company sold 521,000 units (packages of 6 coasters). In the coming year (year 1), the company expects to sell 542,000 units, and, in year 2, it expects to sell 636,000 units. The target ending finished goods inventory for each month is equal to the next month's sales. Howeve because of production issues, the ending inventory in the current year is expected to be only 12,500 units. Each unit requires 0.5 pound of cork. At the end of the current year, management expects to have 19,000 pounds of cork in inventory Management has set a target to have cork on hand equal to one half of next month's sales requirements. Sales and production take place evenly throughout the year. Required: a. Compute the total targeted production of the finished coaster for the coming year. b. Compute the required amount of cork to be purchased for the coming year. a. Total targeted production in units…
- The following information applies to the questions displayed below.]Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 2018 2019 Sales ($46 per unit) $ 920,000 $ 1,840,000 Cost of goods sold ($31 per unit) 620,000 1,240,000 Gross margin 300,000 600,000 Selling and administrative expenses 290,000 340,000 Net income $ 10,000 $ 260,000 Additional Information Sales and production data for these first two years follow. 2018 2019 Units produced 30,000 30,000 Units sold 20,000 40,000 Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $31 per unit product cost consists of the following. Direct materials $ 5 Direct labor 9 Variable overhead 7 Fixed overhead ($300,000/30,000 units) 10 Total product cost per unit $ 31 Selling…Operating results for Division A of Alpha Company during 2019 are as follows: Sales $560,000 Cost of goods sold 347,200 Gross profit 212,800 Direct expenses 37,800 Common expenses 63,000 100,800 $112,000 Total expenses Net income If Division A would maintain the same quantity of product sold while raising selling prices by 14.000000000000002%, increasing direct labor costs by $28,000 and implementing a new marketing campaign at a cost of $14,000, what would be the effect on the Division's net income? (Ignore income taxes in your calculations.) Select one: O a. Net income would increase by $36,400 b. Net income would increase by $28,000 c. Net income would decrease by $36,400 d. Net income would increase by $42,000 e. None of these options are correct. O O OWildhorse Ltd. estimates sales for the second quarter of 2022 will be as follows. Month April May June Units March 31 April 30 May 31 June 30 3,090 3,190 2,960 The target ending inventory of finished products is as follows. 2,440 2,620 2,600 2,900 Two units of materials are required for each unit of finished product. Production for July is estimated at 3,210 units to start building inventory for the fall sales period. Wildhorse's policy is to have an inventory of raw materials at the end of each month equal to 50% of the following month's production requirements. Raw materials are expected to cost $4 per unit throughout the period. Calculate the May raw materials purchases in dollars. Raw material purchases cost
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