三 --- LL Requlred Informatlon [The following information applies to the questions displayed below] Morganton Company makes one product and it provided the following information to help prepare the master budget a. The budgeted selling price per unit is $60. Budgetedunit sales for June, July, August, and September are 8,300, 14,000, 16,000, and 17000 units, respectively. All sales are on credit. b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. c. The ending finished goods inventory equals 25% of the following month's unit sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $200 per pound. e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month. f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per month is $64,000. 10. What is the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required te produce the forecasted number of units produced? Total direct labor cost < Prev 10 11 12 15 of 15 to search 77 F4 F5 F7
三 --- LL Requlred Informatlon [The following information applies to the questions displayed below] Morganton Company makes one product and it provided the following information to help prepare the master budget a. The budgeted selling price per unit is $60. Budgetedunit sales for June, July, August, and September are 8,300, 14,000, 16,000, and 17000 units, respectively. All sales are on credit. b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. c. The ending finished goods inventory equals 25% of the following month's unit sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $200 per pound. e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month. f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per month is $64,000. 10. What is the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required te produce the forecasted number of units produced? Total direct labor cost < Prev 10 11 12 15 of 15 to search 77 F4 F5 F7
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 20E: Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,...
Related questions
Question
![三
---
LL
Requlred Informatlon
[The following information applies to the questions displayed below]
Morganton Company makes one product and it provided the following information to help prepare the master budget
a. The budgeted selling price per unit is $60. Budgetedunit sales for June, July, August, and September are 8,300,
14,000, 16,000, and 17000 units, respectively. All sales are on credit.
b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month.
c. The ending finished goods inventory equals 25% of the following month's unit sales.
d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of
finished goods requires 5 pounds of raw materials. The raw materials cost $200 per pound.
e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month.
f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.
g. The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per
month is $64,000.
10. What is the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required te
produce the forecasted number of units produced?
Total direct labor cost
< Prev
10 11 12
15
of 15
to search
77
F4
F5
F7](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F504f9a44-b97f-4fd5-a72d-264d10f13ba2%2F89f00504-d61f-487e-b0f2-8aa2e594423a%2Flliiww.jpeg&w=3840&q=75)
Transcribed Image Text:三
---
LL
Requlred Informatlon
[The following information applies to the questions displayed below]
Morganton Company makes one product and it provided the following information to help prepare the master budget
a. The budgeted selling price per unit is $60. Budgetedunit sales for June, July, August, and September are 8,300,
14,000, 16,000, and 17000 units, respectively. All sales are on credit.
b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month.
c. The ending finished goods inventory equals 25% of the following month's unit sales.
d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of
finished goods requires 5 pounds of raw materials. The raw materials cost $200 per pound.
e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month.
f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.
g. The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per
month is $64,000.
10. What is the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required te
produce the forecasted number of units produced?
Total direct labor cost
< Prev
10 11 12
15
of 15
to search
77
F4
F5
F7
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