Carlton Company manufactures model airplane kits. Direct materials are three ounces of plastic per kit and the plastic costs $2 per ounce. Indirect materials are considered insignificant and are not includedin the budgeting process. Each kit requires 0.25 hours of direct labor at an average cost of $25 per hour Manufacturing overhead is allocated using direct labor hours as the allocation base. The companyhas prepared the following budgets:View the buccalaCarton Company projects sales of 200. 100, 300, and 900 kts for the next four quarters. Carlton Company has no kits in beginning inventory. Determine the cost per kit to manufacture the model airplanekits. Prepare a cost of goods sold budget for the year. Round amounts to two decimal places.Determine the cost per kit to manufacture the model akplane kits. (Round your answers to two decimal places, SX.XX)Direct materials cost per kitDrect labor cost per kitManufacturing overhead cost per ktTotal projected manufacturing cost per kit66.25

We can explain further as follows;1. Direct Materials Cost per KitDirect materials are the raw…

Answered: Carlton Company manufactures model…

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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Ring Company makes two models of phones - Blue and Yellow. Blue is a basic model and Yellow has more advanced features. Data on the two phones is as follows: Blue Yellow Expected production 50,000 phones 150,000 phones Direct materials and Direct labour costs $25 $40 Ring Company's accountant prepares the following budget that she plans to use to prepare an activity based analysis the costs of Blue and Yellow: \table[[, Blue, Yellow, Budgeted Cost],[,,,], [ Equipment setup, 100 setups, 60 setups,$88,000 ง Required: 1. "Calculate the manufacturing overhead allocation rate for each activity using ABC 2. Calculate the cost of the Blue Phone." 3. If the company wants a markup on cost of 75 percent calculate the selling price of the Blue Phone
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Smile Company makes baked goods. The budgeted sales are $620,000, budgeted variable costs are $260,400, and budgeted fixed costs are $237,800. What is the budgeted operating income?
Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $3 per unit, direct labor of $4 per unit, and manufacturing overhead of $2 per unit. Fixed costs are $30,968. What would be the budgeted amounts for 26,397 units?
Prepare a flexible budget for the three sales levels under consideration. Waterway manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,900 canoes, 3,340 canoes, and 3,550 canoes. Canoes sell for $990 each. The standard variable cost information for a canoe is as follows. Direct materials $ 297 Direct labor 112 Variable overhead Utilities 35 Indirect material 30 Indirect labor 60 Total $ 534 Annual fixed overhead cost is expected to be: Maintenance $ 20,600 Depreciation 43,500 Insurance 29,500 Rent 33,690 Total $ 127,290
The cost accountant for Carlos Candies, Incorporated prepared the following static budget based on expected activity of 4,200 units: Revenues Variable Costs Contribution Margin Fixed Costs Net Income Multiple Choice If Carlos actually produced 3,300 units, the flexible budget would show fixed costs amounting to O O O $25,300. $ 124,000 $118,000. (94,500) 29,500 (23,500) $ 6,000 None of these answers are correct. $23,500.
Cameron Company manufactures model airplane kits. Direct materials are seven ounces of plastic per kit and the plastic costs $3 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. 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. The company has prepared the following budgets View the budgets. Cameron Company projects sales of 350, 150, 450, and 550 kits for the next four quarters. Cameron Company has no kits in beginning inventory. Determine the cost per kit to manufacture the model airplane kits. Prepare a cost of goods sold budget for the year. Round amounts to two decimal places. Determine the cost per kit to manufacture the model airplane kits. (Round your answers to two decimal places, $XXX.) Total projected manufacturing cost per kit Budgets Cameron Company Direct Materials Budget For the Year Ended December 31…
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Jackson Company manufactures computer keyboards. The budgeted sales price is $60 per keyboard, the variable costs are $28 per keyboard, and budgeted fixed costs are $13,000. What is the budgeted operating income for 2,000 keyboards? OA. $58,000 OB. $51,000 OC. $67,000 OD. $64,000
Perez Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Perez planned to make and sell 25,000 copies of the book. Number of units Variable manufacturing costs Required: a.-d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 24,000 and 26,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 26,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). Fixed costs $36.50 8.60 4.40 Master Budget 25,000 7.10 $ 131,000 50,000 Flexible Budgets 24,000 < Prev 4 of 4 26,000 Volume Variances…
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Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units? PLEASE NOTE: All dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345). Cold X, Inc. Flexible Budget 20,000 Units 25,000 Units Production Costs Fixed Overhead Total Costs

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