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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2. Each unit requires direct labor of 4.1 hours. The labor rate is $13.75 per hour and next year’s production is estimated at 75,000 units. What is the amount to be included in next year’s direct labor budget?
Shalom Company prepared its 2023 manufacturing overhead budget to produce Product Peace. Variable overhead costs per direct labor hour are Indirect materials, P3; Indirect labor, P15; Maintenance, P2. Fixed costs totaled P68,000 composed of Supervisor's salaries, P36,000; Depreciation, P20,000; Maintenance, P12,000. Producing each unit requires 2 direct labor hours. Shalom Company estimates that units to be produced for each quarter are 3,000, 3,600, 4,000, and 6,000, respectively. Amounts must be in whole numbers. Example: 88,000 or (88,000) How much is the total manufacturing overhead budget?
Uli Industrial has estimated that production for the next five quarters will be: Production Information 1st quarter, 2020 47,700 units 2nd quarter, 2020 43,200 units 3rd quarter, 2020 52,200 units 4th quarter, 2020 40,800 units 1st quarter, 2021 49,300 units Finished units of production require 6 pounds of raw material per unit. The raw material cost is $7 per pound. There is $300,510 of raw material on hand at the beginning of the first quarter, 2020. Uli desires to have 15 percent of next quarter's material requirements on hand at the end of each quarter. Prepare quarterly direct materials purchases budgets for Uli Industrial for 2020. Uli Industrial Direct Materials Purchases Budget For the Year Ending December 31, 2020 Quarter 1 Quarter 2 Quarter 3 Quarter 4 $ $ $ $ $ $ $ %24 %24 %24 %24 %24
The following data relates to a company's operating budget for its next operating year: Sales price per unit (E) 11 Sales volume (units) 90,000 Costs: Materials (E) 52.500 Labour (E) 33,800 Energy (E) 25,000 Depreciation (£) 105,000 The budget has been prepared using the following assumptions:, Materials costs are variable. Labour costs are semi-variable with a fixed element of E15.000 Depreciation is a fixed cost. An allowance for an energy price increase of 13% has already been included in the energy costs. The company now wishes to revise the data to incorporate the following updated assumptions: Selling prices will be reduced by 7% The sales volume will increase by 6% The rise in the energy prices should be revised to 6% What will be the company's new energy cost for the year?
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: Units to be produced 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 9,000 7,000 7,500 8,400 Each unit requires 0.45 direct labor-hours, and direct laborers are paid $10.00 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 1st Quarter Rordan Corporation Direct Labor Budget 2nd Quarter 3rd Quarter 4th Quarter Year
Subject : Accounting
Clark Inc plans to sell 9000 lawn chairs during May, 9700 in June, and 7000 during July. The company keeps 15% of the next month's sales as ending inventory. How many units should Clark produce during June? 10105 9295 Not enough information to determine 10750
K Base Machinery showed the following operating budget for the next year. Complete parts (a) through (d) below Each scenario is independent Sales $2,400,000 Fixed cost Total variable cost Total cost Net income $1,200,000 760,000 1,960,000 $440,000 (a) Calculate the contribution margin and contribution rate. The contribution margin is $ (Round to the nearest dollar as needed.) ma
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 16,000 19,000 18,000 17,000 In addition, 16,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $7,000. Each unit requires 4 grams of raw material that costs $1.80 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter's production needs. The desired ending inventory for the 4th Quarter is 5,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.40 direct labor-hours and direct laborers are paid $12.50 per hour. Required: 1. and 2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material…
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 following data relates to a company's operating budget for its next operating year Sales price per unit (E) 26 Sales volume units) 39,000 Costs: Materials () 30,000 Labour (E) 33.800 Energy (E 37,000 Depreciation (E) 105,000 The budget has been prepared using the following assumptions Materials costs are variable. Labour costs are semi-variable with a fxed element of 15,000. Depreciation is a foxed cost. An allowance for an energy price increase of 11% has already been inchuded in the enegY costs The company now wishes to revise the data to incorporate the following updated assumptions: Selling prices will be reduced by B% The sales vokume will increase by 10% The rise in the energy prices should be revised to 7% What will be the company's new materials cost for the year?
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…

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