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Blossom Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022: Estimated unit sales Sales price per unit Direct labour hours per unit Direct labour cost per hour January 9,000 $54.00 2.00 $8.00 February March April May 10,000 7,000 9,000 10,000 $51.70 $51.70 $51.70 $51.70 2.00 $8.00 1.50 $8.00 $9.00 1.50 1.50 $9.00 Blossom has a labour contract that calls for a wage increase to $9.00 per hour on April 1. It has installed new labour-saving machinery. which will be fully operational by March 1. Blossom expects to begin the year with 14,000 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 50% of the next month's sales. (a) Prepare a production budget and a direct labour budget for Blossom by month and for the first quarter of the year. The direct labour budget should include direct labour hours and show the detail for each direct labour cost category. (Round DLH per unit and labor rate per hour to 2 decimal places, eg 12.25 and all other answers to 0 decimal places, eg 125)

Blossom Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022: Estimated unit sales Sales price per unit Direct labour hours per unit Direct labour cost per hour January 9,000 $54.00 2.00 $8.00 February March April May 10,000 7,000 9,000 10,000 $51.70 $51.70 $51.70 $51.70 2.00 $8.00 1.50 $8.00 $9.00 1.50 1.50 $9.00 Blossom has a labour contract that calls for a wage increase to $9.00 per hour on April 1. It has installed new labour-saving machinery. which will be fully operational by March 1. Blossom expects to begin the year with 14,000 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 50% of the next month's sales. (a) Prepare a production budget and a direct labour budget for Blossom by month and for the first quarter of the year. The direct labour budget should include direct labour hours and show the detail for each direct labour cost category. (Round DLH per unit and labor rate per hour to 2 decimal places, eg 12.25 and all other answers to 0 decimal places, eg 125)

FINANCIAL ACCOUNTING
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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Total Total eTextbook and Media Jan Jan BLOSSOM COMPANY Production Budget For the quarter ending March 31, 2022 Feb Direct Labour Budget For the quarter ending March 31, 2022 Feb Mar Mar
Transcribed Image Text:Total Total eTextbook and Media Jan Jan BLOSSOM COMPANY Production Budget For the quarter ending March 31, 2022 Feb Direct Labour Budget For the quarter ending March 31, 2022 Feb Mar Mar
Blossom Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022: Estimated unit sales Sales price per unit Direct labour hours per unit Direct labour cost per hour January 9,000 $54,00 2.00 $8,00 February March April 10,000 7,000 9,000 $51.70 $51.70 2.00 $8.00 1.50 $8.00 $51.70 1.50 $9.00 May 10,000 $51.70 1.50 $9.00 Blossom has a labour contract that calls for a wage increase to $9.00 per hour on April 1. It has installed new labour-saving machinery. which will be fully operational by March 1. Blossom expects to begin the year with 14,000 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 50% of the next month's sales. (a) Prepare a production budget and a direct labour budget for Blossom by month and for the first quarter of the year. The direct labour budget should include direct labour hours and show the detail for each direct labour cost category. (Round DLH per unit and labor rate per hour to 2 decimal places, eg. 12.25 and all other answers to O decimal places, e.g. 125.)
Transcribed Image Text:Blossom Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022: Estimated unit sales Sales price per unit Direct labour hours per unit Direct labour cost per hour January 9,000 $54,00 2.00 $8,00 February March April 10,000 7,000 9,000 $51.70 $51.70 2.00 $8.00 1.50 $8.00 $51.70 1.50 $9.00 May 10,000 $51.70 1.50 $9.00 Blossom has a labour contract that calls for a wage increase to $9.00 per hour on April 1. It has installed new labour-saving machinery. which will be fully operational by March 1. Blossom expects to begin the year with 14,000 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 50% of the next month's sales. (a) Prepare a production budget and a direct labour budget for Blossom by month and for the first quarter of the year. The direct labour budget should include direct labour hours and show the detail for each direct labour cost category. (Round DLH per unit and labor rate per hour to 2 decimal places, eg. 12.25 and all other answers to O decimal places, e.g. 125.)
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