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. Animal Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Information for the two products for the month of April is given in the following tables: Input Prices Direct materials Plastic Metal Direct manufacturing labor $5 per pound $4 per pound $10 per direct manufacturing labor-hour Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials Plastic 4 pounds 0.5 pounds 6 pounds 1 pound Metal Direct manufacturing labor-hours Machine-hours (MH) 3 hours 5 hours 11 MH 19 MH Inventory Information, Direct Materials Plastic Metal 290 pounds Beginning inventory Target ending inventory 70 pounds 410 pounds 65 pounds $217 Cost of beginning inventory $1,102 Animal Gear accounts for direct materials using a FIFO cost-flow assumption. Sales and Inventory Information, Finished Goods Dog-eriffic Cat-allac Expected sales in units 530 225 $ 310 $ 205 Selling price Target ending inventory in units Beginning inventory in units Beginning inventory in dollars 10 30 10 19 $1,000 $4,650 Animal Gear uses a FIFO cost-flow assumption for finished-goods inventory. Animal Gear uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $105 per setup-hour, $10 per machine-hour, and $15 per inspection-hour, respectively. Other information follows: Cost-Driver Information Cat-allac Dog-eriffic Number of units per batch Setup time per batch 25 1.50 hours 1.75 hours Inspection time per batch 0.5 hour 0.7 hour If necessary, round up to calculate number of batches. Nonmanufacturing fixed costs for March equal $32,000, half of which are salaries. Salaries are ex- pected to increase 5% in April. Other nonmanufacturing fixed costs will remain the same. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue.

. Animal Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Information for the two products for the month of April is given in the following tables: Input Prices Direct materials Plastic Metal Direct manufacturing labor $5 per pound $4 per pound $10 per direct manufacturing labor-hour Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials Plastic 4 pounds 0.5 pounds 6 pounds 1 pound Metal Direct manufacturing labor-hours Machine-hours (MH) 3 hours 5 hours 11 MH 19 MH Inventory Information, Direct Materials Plastic Metal 290 pounds Beginning inventory Target ending inventory 70 pounds 410 pounds 65 pounds $217 Cost of beginning inventory $1,102 Animal Gear accounts for direct materials using a FIFO cost-flow assumption. Sales and Inventory Information, Finished Goods Dog-eriffic Cat-allac Expected sales in units 530 225 $ 310 $ 205 Selling price Target ending inventory in units Beginning inventory in units Beginning inventory in dollars 10 30 10 19 $1,000 $4,650 Animal Gear uses a FIFO cost-flow assumption for finished-goods inventory. Animal Gear uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $105 per setup-hour, $10 per machine-hour, and $15 per inspection-hour, respectively. Other information follows: Cost-Driver Information Cat-allac Dog-eriffic Number of units per batch Setup time per batch 25 1.50 hours 1.75 hours Inspection time per batch 0.5 hour 0.7 hour If necessary, round up to calculate number of batches. Nonmanufacturing fixed costs for March equal $32,000, half of which are salaries. Salaries are ex- pected to increase 5% in April. Other nonmanufacturing fixed costs will remain the same. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Q.prepare Nonmanufacturing costs budget for april.

. Animal Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Information for the two products for the month of April is given in the following tables: Input Prices Direct materials Plastic Metal Direct manufacturing labor $5 per pound $4 per pound $10 per direct manufacturing labor-hour
Transcribed Image Text:. Animal Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Information for the two products for the month of April is given in the following tables: Input Prices Direct materials Plastic Metal Direct manufacturing labor $5 per pound $4 per pound $10 per direct manufacturing labor-hour
Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials Plastic 4 pounds 0.5 pounds 6 pounds 1 pound Metal Direct manufacturing labor-hours Machine-hours (MH) 3 hours 5 hours 11 MH 19 MH Inventory Information, Direct Materials Plastic Metal 290 pounds Beginning inventory Target ending inventory 70 pounds 410 pounds 65 pounds $217 Cost of beginning inventory $1,102 Animal Gear accounts for direct materials using a FIFO cost-flow assumption. Sales and Inventory Information, Finished Goods Dog-eriffic Cat-allac Expected sales in units 530 225 $ 310 $ 205 Selling price Target ending inventory in units Beginning inventory in units Beginning inventory in dollars 10 30 10 19 $1,000 $4,650 Animal Gear uses a FIFO cost-flow assumption for finished-goods inventory. Animal Gear uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $105 per setup-hour, $10 per machine-hour, and $15 per inspection-hour, respectively. Other information follows: Cost-Driver Information Cat-allac Dog-eriffic Number of units per batch Setup time per batch 25 1.50 hours 1.75 hours Inspection time per batch 0.5 hour 0.7 hour If necessary, round up to calculate number of batches. Nonmanufacturing fixed costs for March equal $32,000, half of which are salaries. Salaries are ex- pected to increase 5% in April. Other nonmanufacturing fixed costs will remain the same. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue.
Transcribed Image Text:Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials Plastic 4 pounds 0.5 pounds 6 pounds 1 pound Metal Direct manufacturing labor-hours Machine-hours (MH) 3 hours 5 hours 11 MH 19 MH Inventory Information, Direct Materials Plastic Metal 290 pounds Beginning inventory Target ending inventory 70 pounds 410 pounds 65 pounds $217 Cost of beginning inventory $1,102 Animal Gear accounts for direct materials using a FIFO cost-flow assumption. Sales and Inventory Information, Finished Goods Dog-eriffic Cat-allac Expected sales in units 530 225 $ 310 $ 205 Selling price Target ending inventory in units Beginning inventory in units Beginning inventory in dollars 10 30 10 19 $1,000 $4,650 Animal Gear uses a FIFO cost-flow assumption for finished-goods inventory. Animal Gear uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $105 per setup-hour, $10 per machine-hour, and $15 per inspection-hour, respectively. Other information follows: Cost-Driver Information Cat-allac Dog-eriffic Number of units per batch Setup time per batch 25 1.50 hours 1.75 hours Inspection time per batch 0.5 hour 0.7 hour If necessary, round up to calculate number of batches. Nonmanufacturing fixed costs for March equal $32,000, half of which are salaries. Salaries are ex- pected to increase 5% in April. Other nonmanufacturing fixed costs will remain the same. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue.
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