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Austin, Inc, manufactures model airplane kits and projects production at 350, 530, 500, and 700 kits for the next four quarters. Direct materials are $? per kit indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is $400, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Austin desires a balance of $400 in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.25 hours of direct labor at an average cost of $50 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base Variable overhead is $0.30 per kit, and fixed overhead is $135 per quarter. Prepare Austin's direct materials budget, direct labor budget, and manufacturing overhead budget for the year. Round the direct labor hours needed for production, budgeted overhead costs, and predetermined overhead allocation rate to two decimal places. Round other amounts to the nearest whole number. Begin by preparing Austin's direct materials budget Direct materials cost per unit Direct materials needed for production Plus: Total direct materials needed Austin, Inc. Direct Materials Budget For the Year Ended December 31 First Quarter Second Quarter Third Quarter Fourth Quarter Total

Austin, Inc, manufactures model airplane kits and projects production at 350, 530, 500, and 700 kits for the next four quarters. Direct materials are $? per kit indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is $400, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Austin desires a balance of $400 in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.25 hours of direct labor at an average cost of $50 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base Variable overhead is $0.30 per kit, and fixed overhead is $135 per quarter. Prepare Austin's direct materials budget, direct labor budget, and manufacturing overhead budget for the year. Round the direct labor hours needed for production, budgeted overhead costs, and predetermined overhead allocation rate to two decimal places. Round other amounts to the nearest whole number. Begin by preparing Austin's direct materials budget Direct materials cost per unit Direct materials needed for production Plus: Total direct materials needed Austin, Inc. Direct Materials Budget For the Year Ended December 31 First Quarter Second Quarter Third Quarter Fourth Quarter Total

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Austin, Inc, manufactures model airplane kits and projects production at 350, 530, 500, and 700 kits for the next four quarters. Direct materials are $7 per kit. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is $400, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Austin desires a balance of $400 in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.25 hours of direct labor at an average cost of $50 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base Variable overhead is $0.30 per kit, and fixed overhead is $135 per quarter. Prepare Austin's direct materials budget, direct labor budget, and manufacturing overhead budget for the year. Round the direct labor hours needed for production, budgeted overhead costs, and predetermined overhead allocation rate to two decimal places. Round other amounts to the nearest whole number. Begin by preparing Austin's direct materials budget Direct materials cost per unit i Direct materials needed for production Plus: Total direct materials needed Austin, Inc. Direct Materials Budget For the Year Ended December 31 First Quarter Second Quarter Third Quarter Fourth Quarter Total
Transcribed Image Text:Austin, Inc, manufactures model airplane kits and projects production at 350, 530, 500, and 700 kits for the next four quarters. Direct materials are $7 per kit. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is $400, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Austin desires a balance of $400 in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.25 hours of direct labor at an average cost of $50 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base Variable overhead is $0.30 per kit, and fixed overhead is $135 per quarter. Prepare Austin's direct materials budget, direct labor budget, and manufacturing overhead budget for the year. Round the direct labor hours needed for production, budgeted overhead costs, and predetermined overhead allocation rate to two decimal places. Round other amounts to the nearest whole number. Begin by preparing Austin's direct materials budget Direct materials cost per unit i Direct materials needed for production Plus: Total direct materials needed Austin, Inc. Direct Materials Budget For the Year Ended December 31 First Quarter Second Quarter Third Quarter Fourth Quarter Total
Direct materials cost per unit Direct materials needed for production Plus: Total direct materials needed Less: Budgeted purchases of direct materials Direct labor hours needed for production Budgeted direct labor cost VOH cost per kit Budgeted VOH Budgeted FOH Budgeted manufacturing overhead costs Puaung H Direct Materials Budget For the Year Ended December 31 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate First Quarter Prepare the direct labor budget. (Enter any hours amounts to two decimal places, X.XX, and round all other amounts to the nearest whole number.) Austin, Inc. Direct Labor Budget For the Year Ended December 31 First Second Quarter Quarter Second Quarter First Quarter Third Quarter Third Quarter Second Quarter Fourth Quarter Fourth Quarter Total Third Quarter Total Fourth Quarter Total
Transcribed Image Text:Direct materials cost per unit Direct materials needed for production Plus: Total direct materials needed Less: Budgeted purchases of direct materials Direct labor hours needed for production Budgeted direct labor cost VOH cost per kit Budgeted VOH Budgeted FOH Budgeted manufacturing overhead costs Puaung H Direct Materials Budget For the Year Ended December 31 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate First Quarter Prepare the direct labor budget. (Enter any hours amounts to two decimal places, X.XX, and round all other amounts to the nearest whole number.) Austin, Inc. Direct Labor Budget For the Year Ended December 31 First Second Quarter Quarter Second Quarter First Quarter Third Quarter Third Quarter Second Quarter Fourth Quarter Fourth Quarter Total Third Quarter Total Fourth Quarter Total
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