Cameron, Inc. Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total (1) Direct materials (ounces) per kit Direct materials needed for production Plus: (2) Total direct materials needed Less: (3) Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours as a decimal to two places, X.XX, and round all other amounts to the nearest whole number.) Cameron, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total (4) (5) Direct labor hours needed for production (6) Budgeted direct labor cost Prepare the manufacturing overhead budget. (Enter all costs and hours as a decimal to two places, X.XX. Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing overhead.) Cameron, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total (7) VOH cost per kit Budgeted VOH Budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate 1: More Info Direct materials are seven ounces of plastic per kit and the plastic costs $5 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 950 ounces, and the company desires to end each quarter with 10% of the materials needed for the next quarter's production. Cameron desires a balance of 290 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.75 hours of direct labor at an average cost of $15 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.80 per kit, and fixed overhead is $130 per quarter.
Cameron, Inc. Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total (1) Direct materials (ounces) per kit Direct materials needed for production Plus: (2) Total direct materials needed Less: (3) Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours as a decimal to two places, X.XX, and round all other amounts to the nearest whole number.) Cameron, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total (4) (5) Direct labor hours needed for production (6) Budgeted direct labor cost Prepare the manufacturing overhead budget. (Enter all costs and hours as a decimal to two places, X.XX. Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing overhead.) Cameron, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total (7) VOH cost per kit Budgeted VOH Budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate 1: More Info Direct materials are seven ounces of plastic per kit and the plastic costs $5 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 950 ounces, and the company desires to end each quarter with 10% of the materials needed for the next quarter's production. Cameron desires a balance of 290 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.75 hours of direct labor at an average cost of $15 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.80 per kit, and fixed overhead is $130 per quarter.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Cameron,
Inc. manufactures model airplane kits and projects production at
300,
120,
350,
and
550
kits for the next four quarters.1(Click
the icon to view the manufacturing information.)Prepare
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.
Cameron's
direct materials budget, direct labor budget, and manufacturing Begin by preparing
Cameron's
direct materials budget.|
Cameron, Inc.
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Direct Materials Budget
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For the Year Ended December 31
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First
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Second
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Third
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Fourth
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Quarter
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Quarter
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Quarter
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Quarter
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Total
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(1)
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Direct materials (ounces) per kit
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Direct materials needed for production
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Plus:
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(2)
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Total direct materials needed
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Less:
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(3)
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Budgeted purchases of direct materials
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Direct materials cost per ounce
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Budgeted cost of direct materials purchases
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Prepare the direct labor budget. (Enter any hours as a decimal to two places, X.XX, and round all other amounts to the nearest whole number.)
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Cameron, Inc.
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Direct Labor Budget
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For the Year Ended December 31
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First
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Second
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Third
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Fourth
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Quarter
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Quarter
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Quarter
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Quarter
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Total
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(4)
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(5)
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Direct labor hours needed for production
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(6)
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Budgeted direct labor cost
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Prepare the manufacturing overhead budget. (Enter all costs and hours as a decimal to two places, X.XX. Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing overhead.)
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Cameron, Inc.
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Manufacturing Overhead Budget
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For the Year Ended December 31
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First
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Second
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Third
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Fourth
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Quarter
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Quarter
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Quarter
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Quarter
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Total
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(7)
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VOH cost per kit
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Budgeted VOH
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Budgeted FOH
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Budgeted
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Direct labor hours
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Budgeted manufacturing overhead costs
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Predetermined overhead allocation rate
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1: More Info
Direct materials are
seven
ounces of plastic per kit and the plastic costs
$5
per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is
950
ounces, and the company desires to end each quarter with
10%
of the materials needed for the next quarter's production.
Cameron
desires a balance of
290
ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires
0.75
hours of direct labor at an average cost of
$15
per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is
$0.80
per kit, and fixed overhead is
$130
per quarter.(1)
Budgeted kits to be produced
Budgeted kits to be sold
Desired direct materials in ending inventory
Direct materials in beginning inventory
(2)
Budgeted kits to be produced
Budgeted kits to be sold
Desired direct materials in ending inventory
Direct materials in beginning inventory
(3)
Budgeted kits to be produced
Budgeted kits to be sold
Desired direct materials in ending inventory
Direct materials in beginning inventory
(4)
Budgeted kits to be produced
Budgeted kits to be sold
Desired kits in ending inventory
Kits in beginning inventory
(5)
Direct labor cost per hour
Direct labor hours per unit
(6)
Direct labor cost per hour
Direct labor hours per unit
(7)
Budgeted kits to be produced
Budgeted kits to be sold
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