Required:(a)If the company plans to sell 640,000 units during the year, calculatethe number of units it needs to manufacture during the year.(b)Calculate how much of the raw materials should the companypurchase during the year.(c)Compute the labour cost budget. Green Paste Sdn. Bhd. is in the process of preparing its annual budget.The planned level of inventory for the year are provided below:3.InventoryBeginningEndingFinished goods(units)80,00010% from sales targetIncrease by 10% frombeginning materialinventory levelRaw material30,000(grams)Each unit of finished goods requires 8 grams of raw material. The materialcost is RM2 per gram. The production involves two types of labour with thefollowing details:Type of labourSkilledUnskilledLabour hour per unit0.20.5Labour rate per hour(RM)20

Particulars Grams FG Inventory begining [a] 80000 As per given info FG Sales [b]…

Answered: Required: (a) If the company plans to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If a company plans to sell 40000 units of product but sells 60000 units, the most appropriate comparison of the cost data associated with the sales will be by a budget based on O 60000 units of activity. O40000 units of activity. O the original planned level of activity. O 50000 units of activity.
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $67,260 per year Variable costs (supplies): $1.45 per maintenance hour The Assembly and Packaging departments expect to use maintenance hours relatively evenly throughout the year. The Fabricating Department typically uses more maintenance hours in the month of November. Estimated usage in hours for the year and for the peak month is as follows: Yearlyhours MonthlyPeak Hours Assembly Department 5,000 345 Fabricating Department 6,700 1,150 Packaging Department 11,100 805 Total maintenance hours 22,800 2,300 Actual usage for the year by: Assembly Department 3,750 Fabricating Department 6,800 Packaging Department 10,300 Total maintenance hours 20,850 Required: 1. Calculate a variable rate for the Maintenance Department. Round your answer to the…
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 11, 200 2nd Quarter 8,500 3rd Quarter 8,600 4th Quarter 10,980 Units to be produced Each unit requires 0.55 direct labor-hours, and direct laborers are paid $16.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost Rordan Corporation Direct Labor Budget 2nd Quarter 1st Quarter 3rd Quarter 4th Quarter Year
A company identified the following partial list of activities, costs, and activity drivers expected for the next year: Budgeted Costs $ 83,600 $ 8,800 $ 40,500 Activity Extrusion costs Handling costs Packaging costs Production volume Batches made Orders filled Product A 750,000 units 200 batches 75 Cost Driver Number batches made Number of orders filled Number of units made Product B 600,000 units 750 batches 200 Calculate activity rates for each of the three activities using activity-based costing (ABC). 4
Use the information below for Mandy Corporation to answer the question that follow. Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 696,000 units, estimated beginning inventory is 106,000 units, and desired ending inventory is 89,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.Material A: 0.50 lb. per unit @ $0.71 per poundMaterial B: 1.00 lb. per unit @ $1.89 per poundMaterial C: 1.20 lb. per unit @ $0.84 per poundThe dollar amount of Material B used in production during the year is
The master budget of Vaughn Manufacturing shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor Machine supplies Indirect materials Depreciation on factory building Total manufacturing overhead $810000 O $1666000. O$1514000. O $1704000. O $1420000. 190000 230000 190000 $1420000 A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of
The Matrix Company has three product lines of belts-A, B, and C-with contribution margins of $7, $5, and $4, respectively. The president foresees sales of 400,000 units in the coming period, consisting of 40,000 units of A, 200,000 units of B, and 160,000 units of C. The company's fixed costs for the period are $1,020,000. Assuming that the product mix is unchanged, how many units of Product A will be sold to breakeven? Answer:
Answer all parts of the question 1. The unit costs ($) for manufacturing a component for a washing machine are as follows: Direct labor: 20; direct materials: $5; indirect labor and materials: 20% of direct labor; fixed and administrative costs: 30; selling costs: 10. a) Assuming a 90% first-pass yield, what should the unit selling price be if the manufacturer desires a 20% profit margin for conforming product? b) The manufacturer has identified a secondary market for the nonconforming products, that they can sell at $75/unit. Conforming product they wish to sell at 30% above costs. What is the expected profit per unit sold if the company has the same first-pass yield as in part a)? c) If the company improves its first-pass yield to 98%, what is the expected profit per unit sold, assuming other conditions are as stated in part b)?
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: Units to be produced Each unit requires 0.75 direct labor-hours, and direct laborers are paid $16.00 per hour. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 11,000 8,000 8,500 10,800 Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Required production in units Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost Rordan Corporation Direct Labor Budget 2nd Quarter 8,000 1st Quarter 11,000 8,250✔✔ Answer is not complete. $ 132,000 6,000 3rd Quarter 8,500 6,375 4th Quarter 10,800 S 96,000 $ 102,000 $ 8,100 129,600 Year
As a newly hired management accountant, you have been asked to prepare a profit plan for the company for which you work. As part of this task, you've been asked to do some what-if analyses. Following is the budgeted Information regarding the coming year: Selling price per unit Variable cost per unit Fixed costs (per year) Required: $ 100.00 60.00 1,113,040 1. What is the breakeven volume, in units and dollars, for the coming year? 2. Assume that the goal of the company is to earn a pretax (operating) profit of $316,000 for the coming year. How many units would the company have to sell to achieve this goal? 3. Assume that of the $60 variable cost per unit the labor-cost component is $27. Current negotiations with the employees of the company indicate some uncertainty regarding the labor cost component of the variable cost figure presented above. What is the effect on the breakeven point in units if selling price and fixed costs are as planned, but the labor cost for the coming year is…
Petersons Planters, Inc. budgeted the following amounts for the coming year: Beginning inventory, finished goods Cost of goods sold Direct material used in production Ending inventory, finished goods Beginning and ending work-in-process inventory Overhead is estimated to be two times the amount of direct labor dollars. What amount should be budgeted for direct labor for the coming year? Select one: $10,000 400,000 100,000 25,000 0 a. $210,000 b. $157,500 c. $315,000 d. $105,000
Use the information below for Mandy Corporation to answer the question that follow. Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 643,000 units, estimated beginning inventory is 105,000 units, and desired ending inventory is 84,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.Material A: 0.50 lb. per unit @ $0.61 per poundMaterial B: 1.00 lb. per unit @ $2.37 per poundMaterial C: 1.20 lb. per unit @ $0.86 per poundThe dollar amount of Material C used in production during the year is a.$577,714 b.$770,285 c.$706,094 d.$641,904

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