Blaster Corporation manufactures hiking boots. For the coming year, the company has budgeted the following costs for the production and sale of 30,000 pairs of boots. Direct materials Direct labor Manufacturing overhead (fixed and variable) Selling and administrative expenses Totals Assume that the company decides to sell the boots at a unit price of $121 per pair. b-1. Compute the total fixed costs budgeted for the year. b-2. Compute the variable cost per unit. a. Sales price per unit b- Total fixed costs PLOND364 Required: a. Compute the sales price per unit that would result in a budgeted operating income of $900,000, assuming that the company produces and sells 30,000 pairs. (Hint: First compute the budgeted sales revenue needed to produce this operating income.) 1. b- b-3. Compute the contribution margin per pair of boots. b-4. Compute the number of pairs that must be produced and sold annually to break even at a sales price of $121 per pair. b- Budgeted Costs $ 630,000 300,000 720,000 600,000 $2,250,000 b- Variable cost per unit Contribution margin Number of pairs required to break even Budgeted Costs per Pair $21 10 24 per pair of boots 20 $ 75 Percentage of Costs Considered Variable 100% 100 25 20

Blaster Corporation manufactures hiking boots. For the coming year, the company has budgeted the following costs for the production and sale of 30,000 pairs of boots. Direct materials Direct labor Manufacturing overhead (fixed and variable) Selling and administrative expenses Totals Assume that the company decides to sell the boots at a unit price of $121 per pair. b-1. Compute the total fixed costs budgeted for the year. b-2. Compute the variable cost per unit. a. Sales price per unit b- Total fixed costs PLOND364 Required: a. Compute the sales price per unit that would result in a budgeted operating income of $900,000, assuming that the company produces and sells 30,000 pairs. (Hint: First compute the budgeted sales revenue needed to produce this operating income.) 1. b- b-3. Compute the contribution margin per pair of boots. b-4. Compute the number of pairs that must be produced and sold annually to break even at a sales price of $121 per pair. b- Budgeted Costs $ 630,000 300,000 720,000 600,000 $2,250,000 b- Variable cost per unit Contribution margin Number of pairs required to break even Budgeted Costs per Pair $21 10 24 per pair of boots 20 $ 75 Percentage of Costs Considered Variable 100% 100 25 20

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Tioga Company manufactures sophisticated lenses and mirrors used in large optical telescopes. The company is now preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of overhead that should be allocated to the individual product lines from the following information. Units produced Material moves per product line Lenses 30 Mirrors 30 21 11 220 220 Direct-labor hours per unit The total budgeted material-handling cost is $94,200. Required: 1. Under a costing system that allocates overhead on the basis of direct-labor hours, the material-handling costs allocated to one lens would be what amount? 2. Under a costing system that allocates overhead on the basis of direct-labor hours, the material-handling costs allocated to one mirror would be what amount? 3. Under activity-based costing (ABC), the material-handling costs allocated to one lens would be what amount? The cost driver for the material-handling…
Please help me to solve this problem
Gonzales Corp. needs to set a target price for its newly designed product EverReady. The following data relate to this product. Per Unit Total Direct Material $20 Direct Labor $40 Variable manufacturing Overhead $10 Fixed manufacturing overhead $1,200,000 Variable selling and administrative $5 Fixed selling and administrative $1,120,000 The costs shown above are based on a budgeted volume of 80,000 units produced and sold each year. Gonzales uses cost-plus pricing methods to set its target selling price. Because some managers prefer absorption-cost pricing and others prefer variable-cost pricing, the accounting department provides information under both approaches using a markup of 50% on absorption cost and a markup of 70% on variable cost.…
The total factory overhead for Big Light Company is budgeted for the year at $1,204,000. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 11,800 units. Each night light requires 2 hours of direct labor. Desk lamps are budgeted for 12,200 units. Each desk lamp requires 3 hours of direct labor. a. Determine the total number of budgeted direct labor hours for the year. direct labor hours b. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places. $ per direct labor hour c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places. Night lights $ Desk lamps $ per unit per unit
Please help me
Need help with this problem number 10.
Wildhorse's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are as follows: Restorers' wages and benefits Purchasing agent's salary and benefits Administrative salaries and benefits Other overhead costs Total budgeted costs (a1) Your answer is correct. Profit margin $ eTextbook and Media (a2) The company anticipated that the restorers would work a total of 10,000 hours this year. Expected parts and materials were $1,200,000. In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $60.00 and that the material loading charge was 83.80%. Your answer is correct. Time Charges Material Loading Charges Profit margin (a3) $329,400 Determine the profit margin per hour on labor. (Round answer to 2 decimal places, e.g. 15.25.) eTextbook and Media 73,200 24,400 $427,000 Total price of labor and materials $ Determine the profit margin on…
Sunland Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Sunland is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be assigned to each product line. The information shown below relates to overhead, Units planned for production Material moves per product line Purchase orders per product line Direct labor hours per product line (1) One mobile safe (2) Mobile Safes One walk-in safe 200 300 450 800 Walk-in Safes 435.2 50 The total estimated manufacturing overhead was $272,000. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to: (Round answers to 2 decimal places, e.g. 12.25.) 200 350 1.700 per unit per unit
answer in text form please (without image)
Stupji Ltd uses activity based costing. The budgeted distribution costs for the next year are: Transport costs $2,631 Order processing $1,573 -------- Total distribution costs $4,204 It is estimated that in the next year, 325,000 orders will be processed, and that the delivery vehicles will travel 1,495,000 km. A customer has indicated that 138 orders, each of which will require a journey of 122 km for each order will be placed next year. To the nearest $, what is the distribution cost for this customer? a. $47,342 b. $38,891 c. $30,299 d. $1,785
Question: Asy Clean operates a chain of dry cleaners. It is experimenting with a continuous-improvement (i.e., kaizen) budget for operating expenses. Currently, a typical location has operating expenses of $14,000 per month. Plans are in place to achieve labor and utility savings. The associated operational changes are estimated to reduce monthly operating costs by a factor of 0.99 beginning in January. What is the estimated operating cost for: i) January? ii) For June? iii) For December?
rr