Clairpointe Accessories manufactures products for food preparation at several different manufacturing sites. The following costs and other data apply to unit production from the year just ending: Direct materials per unit 6.2 board feet of wood at $26 per board foot 2.8 pounds of plastic at $5.50 per pound Direct labor per unit 2.4 hour at $35 per hour Overhead per unit Indirect labor Indirect materials Power Equipment Facilities Total overhead per unit $ 7.70 1.25 0.75 3.80 2.90 $ 16.40 The plant controller at the Norfolk Street facility is preparing the budget for the coming year. You learn that equipment and facilities costs are fixed and are based on a normal production of 40,000 units per year. Other overhead costs are variable. Plant capacity is sufficient to produce 47,500 units per year. Direct labor costs per hour are expected to rise by 5 percent this year. Wood prices are expected to remain unchanged, but plastic prices are expected to decrease by 8 percent. A new production method, which will be put into use at the beginning of the coming year, will result in a reduction of the wood required to produce a unit by 3 percent. No other costs are expected to change. During the coming budget period, Clairpointe expects to sell 42,000 units. Finished goods inventory is targeted to decrease from the current balance of 14,000 units to 13,500 units as part of a corporate-wide initiative to lower inventory levels. Production will occur evenly throughout the year. Inventory levels for wood and plastic are expected to remain unchanged throughout the year. There is no work-in-process inventory. Required: a. Prepare a production budget for the coming year. b. Estimate the direct materials, direct labor, and overhead costs for the coming year.
Clairpointe Accessories manufactures products for food preparation at several different manufacturing sites. The following costs and other data apply to unit production from the year just ending: Direct materials per unit 6.2 board feet of wood at $26 per board foot 2.8 pounds of plastic at $5.50 per pound Direct labor per unit 2.4 hour at $35 per hour Overhead per unit Indirect labor Indirect materials Power Equipment Facilities Total overhead per unit $ 7.70 1.25 0.75 3.80 2.90 $ 16.40 The plant controller at the Norfolk Street facility is preparing the budget for the coming year. You learn that equipment and facilities costs are fixed and are based on a normal production of 40,000 units per year. Other overhead costs are variable. Plant capacity is sufficient to produce 47,500 units per year. Direct labor costs per hour are expected to rise by 5 percent this year. Wood prices are expected to remain unchanged, but plastic prices are expected to decrease by 8 percent. A new production method, which will be put into use at the beginning of the coming year, will result in a reduction of the wood required to produce a unit by 3 percent. No other costs are expected to change. During the coming budget period, Clairpointe expects to sell 42,000 units. Finished goods inventory is targeted to decrease from the current balance of 14,000 units to 13,500 units as part of a corporate-wide initiative to lower inventory levels. Production will occur evenly throughout the year. Inventory levels for wood and plastic are expected to remain unchanged throughout the year. There is no work-in-process inventory. Required: a. Prepare a production budget for the coming year. b. Estimate the direct materials, direct labor, and overhead costs for the coming year.
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Question
Nn.74.
Subject :- Account
Transcribed Image Text:S
Clairpointe Accessories manufactures products for food preparation at several different manufacturing sites. The following costs and
other data apply to unit production from the year just ending:
Direct materials per unit
6.2 board feet of wood at $26 per board foot
2.8 pounds of plastic at $5.50 per pound
Direct labor per unit
2.4 hour at $35 per hour
Overhead per unit
Indirect labor
Indirect materials
Power
Equipment
Facilities
Total overhead per unit
$ 7.70
1.25
0.75
3.80
2.90
$ 16.40
The plant controller at the Norfolk Street facility is preparing the budget for the coming year. You learn that equipment and facilities
costs are fixed and are based on a normal production of 40,000 units per year. Other overhead costs are variable. Plant capacity is
sufficient to produce 47,500 units per year.
Direct labor costs per hour are expected to rise by 5 percent this year. Wood prices are expected to remain unchanged, but plastic
prices are expected to decrease by 8 percent. A new production method, which will be put into use at the beginning of the coming
year, will result in a reduction of the wood required to produce a unit by 3 percent. No other costs are expected to change.
During the coming budget period, Clairpointe expects to sell 42,000 units. Finished goods inventory is targeted to decrease from the
current balance of 14,000 units to 13,500 units as part of a corporate-wide initiative to lower inventory levels. Production will occur
evenly throughout the year. Inventory levels for wood and plastic are expected to remain unchanged throughout the year. There is no
work-in-process inventory.
Required:
a. Prepare a production budget for the coming year.
b. Estimate the direct materials, direct labor, and overhead costs for the coming year.
Transcribed Image Text:ces
Required:
a. Prepare a production budget for the coming year.
b. Estimate the direct materials, direct labor, and overhead costs for the coming year.
Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare a production budget for the coming year.
Clairpointe Accessories
Production Budget
For the Coming Year
(in units)
Total needs
Units to be produced
< Required A
Required A
Required B
0
Required:
a. Prepare a production budget for the coming year.
b. Estimate the direct materials, direct labor, and overhead costs for the coming year.
0
Complete this question by entering your answers in the tabs below.
Required B >
< Required A
Estimate the direct materials, direct labor, and overhead costs for the coming year.
Direct material costs
Direct labor costs
Overhead costs
Required B >
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