Managerial Accounting
17th Edition
ISBN: 9781260247787
Author: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Publisher: RENT MCG
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Question
Chapter 8, Problem 16E
1.
To determine
Concept introduction:
Direct material budget: The direct material budget means a budget that calculates the materials that must be purchased by the company for a specific time period to fulfill the requirements of the production budget.
Direct labor budget: The direct labor hour budget is used to calculate the number of labor hours that will be needed to produce the units mentioned in the production budget. The budgeted direct labor cost is calculated as the product of labor cost for each unit item and the total number of units planned to produce.
To calculate: The estimated grams of raw materials that need to be purchased each quarter and for the year as a whole.
2.
To determine
Concept introduction:
Direct material budget: The direct material budget means a budget that calculates the materials that must be purchased by the company for a specific time period in order to fulfill the requirements of the production budget.
Direct labor budget: The direct labor hour budget is used to calculate the number of labor hours that will be needed to produce the units mentioned in the production budget. The budgeted direct labor cost is calculated as the product of labor cost for each unit item and the total number of units planned to produce.
To calculate: The cost of raw material purchases each quarter and for the year.
3.
To determine
Concept introduction:
Direct material budget: The direct material budget means a budget that calculates the materials that must be purchased by the company for a specific time period in order to fulfill the requirements of the production budget.
Direct labor budget: The direct labor hour budget is used to calculate the number of labor hours that will be needed to produce the units mentioned in the production budget. The budgeted direct labor cost is calculated as the product of labor cost for each unit item and the total number of units planned to produce.
To calculate: The expected cash payments for the purchase of materials for each quarter and the year.
4.
To determine
Concept introduction:
Direct material budget: The direct material budget means a budget that calculates the materials that must be purchased by the company for a specific time period in order to fulfill the requirements of the production budget.
Direct labor budget: The direct labor hour budget is used to calculate the number of labor hours that will be needed to produce the units mentioned in the production budget. The budgeted direct labor cost is calculated as the product of labor cost for each unit item and the total number of units planned to produce.
To calculate: The projected direct labor cost for each quarter and the year.
4.
To determine
Concept introduction:
Direct material budget: The direct material budget means a budget that calculates the materials that must be purchased by the company for a specific time period in order to fulfill the requirements of the production budget.
Direct labor budget: The direct labor hour budget is used to calculate the number of labor hours that will be needed to produce the units mentioned in the production budget. The budgeted direct labor cost is calculated as the product of labor cost for each unit item and the total number of units planned to produce.
To calculate: The projected direct labor cost for each quarter and the year.
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EXERCISE 8-15 Direct Labor and Manufacturing Overhead Budgets LO8-5, 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:
Units to be produced.
2.
1st Quarter
3.
12,000
2nd Quarter 3rd Quarter
10,000
13,000
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 over-
head is depreciation, which is $23,000 per quarter.
Required:
1.
4th Quarter
14,000
Calculate the company's total estimated direct labor cost for each quarter of the the upcom-
ing fiscal year and for the year as a whole. Assume that the direct labor workforce is adjusted
each quarter to match the number of hours required to produce the estimated number of units
produced (Hint: Refer to Schedule 4 for…
Exercise 8-15 (Algo) Direct Labor and Manufacturing Overhead Budgets [LO8-5, 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
10,800
9,800
11,800
12,800
Each unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour.
In addition, the variable manufacturing overhead rate is $1.90 per direct labor-hour. The fixed manufacturing overhead is $88,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $28,000 per quarter.
Required:
1. Calculate the company’s total estimated direct labor cost for each quarter of the the upcoming fiscal year and for the year as a whole.
2&3. Calculate the company’s total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal…
Q- 9:
The manufacturing section of Climax Company has submitted the
following forecast of units to be produced by quarter for the
upcoming fiscal year:
June
July
August
Units to be produced
10,000
7,500
7,000
In addition, the beginning raw materials inventory for the June is
budgeted to be 7,600 grams and the beginning accounts payable
for the June is budgeted to be $11,775.
Each unit requires 8 grams of raw material that costs $2.50 per
gram. Management desires to end each quarter with an inventory
of raw materials equal to 25% of the following months production
needs. The desired ending inventory for the month of August is
3,700 grams.
Management plans to pay for 70% of raw material purchases in the
month acquired and 30% in the following month.
Required:
Prepare the company's direct materials budget and schedule of
expected cash disbursements for purchases of materials for the
month of June & July
Chapter 8 Solutions
Managerial Accounting
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - 8-4 What is a master budget? Briefly describe its...Ch. 8 - 8—5 Why is the sales forecast the starting point...Ch. 8 - Prob. 6QCh. 8 - 8-7 Why is it a good idea to create a ‘"Budgeting...Ch. 8 - 8-8 What is a self-imposed budget? What are the...Ch. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 -
The Excel worksheet form that appears below is to...Ch. 8 - Prob. 2AECh. 8 - Prob. 1F15Ch. 8 - Prob. 2F15Ch. 8 - Prob. 3F15Ch. 8 - Prob. 4F15Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Prob. 11F15Ch. 8 - Prob. 12F15Ch. 8 - Prob. 13F15Ch. 8 - Prob. 14F15Ch. 8 - Prob. 15F15Ch. 8 - EXERCISE 8-1 Schedule of Expected Cash Collections...Ch. 8 - Prob. 2ECh. 8 - EXERCISE 8-3 Direct Materials Budget LOW Three...Ch. 8 - Prob. 4ECh. 8 -
EXERCISE 8-5 Manufacturing Overhead Budget...Ch. 8 -
...Ch. 8 -
The company's beginning cash balance for the...Ch. 8 - EXERCISE 8-8 Budgeted Income Statement LO8-9 Gig...Ch. 8 - EXERCISE 8-9 Budgeted Balance Sheet LO8-10 The...Ch. 8 -
EXERCISE 8-10 Production and Direct Materials...Ch. 8 - EXERCISE 8-11 Cash Budget Analysis LOB-8 A cash...Ch. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 -
EXERCISE 8-14 Sales and Production Budgets LO8-2,...Ch. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - PROBLEM 8-19 Cash Budget: Income Statement:...Ch. 8 -
PROBLEM 8-20 Cash Budget; Income Statement;...Ch. 8 - Prob. 21PCh. 8 -
PROBLEM 8-22 Evaluating a Company’s Budget...Ch. 8 - PROBLEM 8—23 schedule or Expected cash...Ch. 8 - PROBLEM 8-24 Cash Budget with Supporting Schedules...Ch. 8 - PROBLEM B-25 Cash Budget with Supporting...Ch. 8 - PROBLEM 8-26 Behavioral Aspects of Budgeting:...Ch. 8 - (
$
55,000
$ 55, 000
...Ch. 8 -
PROBLEM 8-28 Cash Budget with Supporting...Ch. 8 - PROBLEM 8-29 Completing a Master Budget LO8-2,...Ch. 8 - PROBLEM 8-30 Integration of the Sales, Production,...Ch. 8 - Prob. 31PCh. 8 -
CASE 8-32 Evaluatinga Company’s Budget Procedures...Ch. 8 - CASE 8-33 Master Budget with Supporting Schedules...
Knowledge Booster
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