Canyon Corporation's budgeted production schedule, by quarters, for the coming year is as follows:Quarter 1= 26,500 unitsQuarter 2 = 23,000 unitsQuarter 3 = 21,000 unitsQuarter 4 = 28,000 unitsEach unit of product requires three pounds of direct material. The company's policy is to begin each quarterwith 25% of that quarter's direct materials production requirements.Canyon expects to have 54,000 pounds of direct materials on hand at the beginning of Quarter 1.What would be Canyon budgeted direct materials purchases (in pounds) for the first quarter?

Particulars Quater 1 Quarter 2 Budgeted Sales in units 26500 23000 Raw materials required per…

arter 1 26,500 units arter 2 23,000 units arter 3 = 21,000 units arter 4 28,000 units h unit of product requires three pounds of direct material. The compa n 25% of that quarter's direct materials production requirements.

arter 1 26,500 units arter 2 23,000 units arter 3 = 21,000 units arter 4 28,000 units h unit of product requires three pounds of direct material. The compa n 25% of that quarter's direct materials production requirements.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Donkey Company expects direct materials cost of OMR 6 per unit for 100,000 units (a total of OMR…

A: Standard cost is determined per unit.

Q: Need answer

A: Reference: Bragg, S. (2023c, November 25). Labor variance definition — AccountingTools.…

Q: (20 Eastorn Droams Lid manufachures a single product The bodgetod sales and production for Yoar 2021…

A: The calculation solution for the above mentioned question given in the following steps for your…

Q: A company manufactures and sells a single product at Shs.150 per unit. Production costs per unit…

A: Absorption costingIt includes all fixed and variable costs in the cost of goods sold.It is more…

Q: cost

A: Materials handling costs are a vital component of a company's profit calculations. These costs…

Q: Swifty Manufacturing Company collected the following production data for the past month: Units…

A: Mixed cost problems are solved using the High -Low-cost method. Variable and fixed costs are…

Q: Storkin Enterprises recently used 24,000 labor hours to produce 8,600 completed units. According to…

A: Labor rate variance = (Actual rate - Standard rate)*Actual hours

Q: Amtson, Inc., manufactures and sells two products: Product R3 and Product NO. The annual production…

A: Direct labor cost per unit-Product R3 = 4.0*$26.20 Direct labor cost per unit-Product R3 = $104.80

Q: ..... 5. Harding Company expected sales to be 50,000 units in February, 45,000 in March, and 55,000…

A: calculation of net operating income in both case are as follows

Q: Task 6. The following are consumed for the production of one unit: ➤18 kg of material A (price 1 € /…

A: The objective of the question is to calculate the variable production costs per unit, unit cost of…

Q: Third: Raw materials and Purchases: Quantity needed from material "M": "E" 17 kg. "F" 13 kg. "G"…

A: To prepare the marketing budget and administrative budget, we need to gather the relevant costs from…

Q: 5 units of Product P requires Material A 3 kg at a cost $10=$30 MaterialB 2 kg at a cost $15= $30…

A: Material mix variance =(Actual quantity - standard mix quantity) x standard price

Q: 27 Haskins Company employs material handling employees who move materials between production…

A: Direct Cost :— It is the cost that is directly incurred in the manufacturing of product during the…

Q: MacDowell Company manufactures 100 kg bags of fertilizer that have the following unit standard costs…

A: C. 1. Purchase of material at a higher cost than the budgeted cost. 2. Actual labor cost incurred is…

Q: Kirchoff.,manufactures a product with the following costs: Direct materials 18.00 Direct labor…

A: Formula used: Selling Price=Total SalesUnits SoldTotal Sales=Cost+Makup

Q: Company B furnished you with the following information with respect to material OXO: Annual…

A: Economic order quantity indicates the number of units to be ordered, So that company can minimize…

Q: Direct Labour: Direct Material: Quantity .25 hour Quantity, 4 kilograms Rate, $16 per hour Price,…

A: Variance is the difference between the performance standard set and the actual results. This is…

Q: Cahaya Cc Standard

A: Standard costing is a very famous old technique came…

Q: The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost…

A: Variable costs: These are the costs that vary with the number of units produced. The more the units…

Q: Royal Enterprises has presented the following information for the past three months operations:…

A: VARIABLE COST Variable Cost is a cost that varies with the level of output.Variable costs include…

Q: Calculate a full analysis of the direct materials price, efficiency, and flexible budget variances.…

A: Actual Cost per unit AmountsTotal cost of material 2,16,675 To. Of units produced…

Q: Pringle Company manufactures and sells a single product, which is priced at $35/unit. The company's…

A: Fixed costs do not change with change in total output level. In contrast total variable costs change…

Q: unit of Zoom are given below: Standard Quantity or Standard Price Standard or Rate $ 2.50 per pound…

A: Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…

Q: The Production Department of Hruska Corporation has submitted the following forecast of units to be…

A: Manufacturing overhead : These are the indirect charges incurred in connection with production in…

Q: Assume the rate per hour is $15 and the cost per unit is $16,000 while the units produced is 8,000…

A: The piece rate with a guaranteed day rate of remuneration is calculated by taking the total cost of…

Q: Doogan Corporation makes a product with the following standard Standard Quantity or Hours Standard…

A: Variance is the difference between the cost estimated by the entity and the costs actually incurred…

Q: Required. Compute the direct materials price and quantity variances for the month. (Indicate the…

A: Introduction:- Standard costs are estimates of the actual costs in a company’s production process…

Q: Required: Prepare the jaurnal cntries to record the purchased of materials. used of materials and…

A: Recording journal entries is the basic and the first step of an accounting cycle. Business…

Q: Kirchoff.,manufactures a product with the following costs: Direct materials 18.00 Direct labor…

A: The cost per unit is calculated as total cost divided by number of units produced. The mark up…

Q: 1. Sales: 32,000 units; unit selling price $82 2. Cost of one unit of finished goods: direct…

A: Cost of goods sold refers to the total cost of merchandise inventory sold during a particular…

Q: Task 6. The following are consumed for the production of one unit: ➤ 18 kg of material A (price 1 €…

A: Assuming one unit requires labor from both responsibility centers (center 1 and center 2) and that…

Q: Our company ma average. Separate direct materials and conversion costs, Chemical X is comprised of…

A: a) The units completed is calculated below, Unit completed=1,500+15,000-1,200 Unit completed=15,300…

Q: ABC Company has monthly requirement of 900 units of Material B. The ordering cost per delivery is…

A: Solution: Economic order quantity = (2*D*S/H)^1/2 Where D = Demand of year S = Order cost per order…

Q: Part 1 The total costs and output volume of Example Ltd for the preceding six months are given in…

A: The total cost is calculated as sum of variable and fixed cost.

Q: Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells…

A: Manufacturing costs are the total costs directly associated with the product. These are the costs…

Q: Lebron Co. manufactures product X with the following standard costs: Direct materials, 20 yards @…

A: Direct Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked

Q: e following information relates to product A: Quantity Unit Price Cost Per Unit Material…

A: The variance is the difference between standard and actual cost of production.

Q: e of HG Ltd's products is 5 hours @ £8 per hour; last month, 6,0 £14,000A respectively. What was the…

A: Answer : Standard labor hour allowed = Standard labor hour allowed per unit * Actual units Standard…

Q: Current Attempt in Progress White Supplies' total material costs are $28,200 and total conversion…

A: Units cost can be calculated by dividing the cost with the equivalent units of production.

Q: The HASF Company has an annual plant capacity of 50,000 units. Predicted data on sales and costs are…

A: Decision making is a process or an act of deciding something using rational thinking, intuition and…

Q: Sessegnon Ltd manufactures a single product that is sold for £40 per unit. Details of the costs for…

Q: 12) The Crowe Company provides the following standard cost data per unit of product: Direct material…

A: The variance is the difference between the standard and actual cost data. The variance can be…

Question

Canyon Corporation's budgeted production schedule, by quarters, for the coming year is as follows:
Quarter 1= 26,500 units
Quarter 2 = 23,000 units
Quarter 3 = 21,000 units
Quarter 4 = 28,000 units
Each unit of product requires three pounds of direct material. The company's policy is to begin each quarter
with 25% of that quarter's direct materials production requirements.
Canyon expects to have 54,000 pounds of direct materials on hand at the beginning of Quarter 1.
What would be Canyon budgeted direct materials purchases (in pounds) for the first quarter?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Answer

VIEW

Notes

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

7
10 In July, TPM Co. incurred total costs of $60,000 and made 6000 units. In December it produced 4000 units and total costs were $40,000. What is the variable cost per unit? a. S12.00 b. $15.00 c. S10.00 d. $8.00
A company produces three components on the same machine. The components are used i the manufacture of a finished product. The budget for next year indicates a requirement for 3,000 units of each component, but only 60,000 hours of machine time will be available. Additional components can be purchased from an external supplier to meet any production shortfall. Component Machine hours per unit A B с 9 5 O $537,000 O $543,000 O $549,000 O $553,000 12 Show Transcribed Text Variable production cost per unit $ per unit 45 70 56 Purchase price from external supplier $ per unit 65 78 80 What is the minimum total variable cost at which the 3,000 units of all three components can be obtained?
ion 1 enny's direct material cost is $5 per unit. The direct labor rate is $19 per hour and each units takes 2 hours to produce. Variable manufacturing overhead is $5 per unit and total budgeted fixed overhead is $6000. A sales commission of $3 is paid on each unit. If Penny expects to produce 3900 units and sell 1400 units, what is The budget cost of goods sold per unit? Round your answer to the nearest 2 decimal places 200-2 Question 1 of 5
The standard cost card for product Alpha is as follows: £ Direct material 5kg@ £11.50 per kg 57.50 Direct Labour 4 labour hours @£9 per hour 36.00 93.50 In the period just ended 3,000 units were produced and costs were incurred as follows: Quantity Cost (£) Direct material 15900kg 180465 Direct labour 11550 hours 106260 286725 Required: Calculate the direct materials price variance for product Alpha. Calculate the direct labour rate variance for product Alpha. Explain the factors that need to be taken into account when deciding to investigate a variance.
Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting $215,160 Machine hours Assembly 189,550 Direct labor hours Inspecting 30,520 Number of inspections Setup 39,730 Number of setups Materials handling 36,960 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 5,180 4,600 9,780 Direct labor hours 4,460 6,690 11,150 Number of inspections 1,660 520 2,180 Number of setups 230 60 290 Number of loads 700 180 880 Units produced 10,400 5,200 15,600 a. Determine the activity rate for each activity. If required, round the rate to the…
3. A product's standard cost card includes the following: 3 hours of labour at £10 per hour = £30 In March, the company used 27,000 hours at a cost of £285,000 in order to produce 8,500 units. What was the labour rate variance? (a) £15,000 A (b) £30,000 A £45,000 A (d) £15,000 F
15
The costs to produce 25,000 units at 70% capacity are: Direct materials P 46,000 Direct labor 55,000 Factory overhead, all fixed 29,000 Selling expense (35% variable, 65% fixed) 50,000 What unit price would the company have to charge to make P2,250 on a sale of 1,500 additional units that would be shipped out of the normal market area?
Production data for 1 sinatra Materials 2.4 kg and £3 per kg Direct labour 1.5 hours at £5 per hour Variable overhead rate £4 per direct labour hour Fixed overhead absorption rate £7 per direct labour hour Budgeted production 5,000 sinatras The marginal cost of a sinatra is A £7.50 B £14.70 C £20.70 D £31.20
5
Isaac Company has estimated the following costs for this year for 240,000 units: Manufacturing Selling & Administrative Variable $150,000 $65,000 Fixed 350,000 135,000 Total $200,000 $500,000 Calculate the manufacturing cost markup needed to obtain a target profit of $100,000.