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Current Designs 10 (Part Level Submission) The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,440 kayaks during 2020. Each kayak will require 54 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.10 per pound, and the finishing kits cost $250 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $14 per hour, and the type II are paid $11 per hour. Manufacturing overhead is budgeted at $390,400 for 2020, broken down as follows. Variable costs Indirect materials $41,280 Manufacturing supplies 44,720 Maintenance and utilities 86,000 172,000 Fixed costs Supervision 96,000 Insurance 14,400 Depreciation 108,000 218,400 Total $390,400 During the first quarter, ended March 31, 2020, 910 units were actually produced with the following costs. Polyethylene powder $56,024 Finishing kits 227,890 Type I labor 25,480 Type II labor 31,250 Indirect materials 10,920 Manufacturing supplies 11,867 Maintenance and utilities 25,210 Supervision 22,000 Insurance 3,600 Depreciation 27,000 Total $441,241 v (b) Prepare the flexible budget for manufacturing for the quarter ended March 31, 2020. Assume activity levels of 760, 860, and 910 units. (List variable costs before fixed costs. Round answers to 2 decimal places, e.g. 5,275.25.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2020 Units to be Produced 760 860 910 %24 %24

Current Designs 10 (Part Level Submission) The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,440 kayaks during 2020. Each kayak will require 54 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.10 per pound, and the finishing kits cost $250 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $14 per hour, and the type II are paid $11 per hour. Manufacturing overhead is budgeted at $390,400 for 2020, broken down as follows. Variable costs Indirect materials $41,280 Manufacturing supplies 44,720 Maintenance and utilities 86,000 172,000 Fixed costs Supervision 96,000 Insurance 14,400 Depreciation 108,000 218,400 Total $390,400 During the first quarter, ended March 31, 2020, 910 units were actually produced with the following costs. Polyethylene powder $56,024 Finishing kits 227,890 Type I labor 25,480 Type II labor 31,250 Indirect materials 10,920 Manufacturing supplies 11,867 Maintenance and utilities 25,210 Supervision 22,000 Insurance 3,600 Depreciation 27,000 Total $441,241 v (b) Prepare the flexible budget for manufacturing for the quarter ended March 31, 2020. Assume activity levels of 760, 860, and 910 units. (List variable costs before fixed costs. Round answers to 2 decimal places, e.g. 5,275.25.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2020 Units to be Produced 760 860 910 %24 %24

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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Current Designs 10 (Part Level Submission) The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,440 kayaks during 2020. Each kayak will require 54 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.10 per pound, and the finishing kits cost $250 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $14 per hour, and the type II are paid $11 per hour. Manufacturing overhead is budgeted at $390,400 for 2020, broken down as follows. Variable costs Indirect materials $41,280 Manufacturing supplies 44,720 Maintenance and utilities 86,000 172,000 Fixed costs Supervision 96,000 Insurance 14,400 Depreciation 108,000 218,400 Total $390,400 During the first quarter, ended March 31, 2020, 910 units were actually produced with the following costs. Polyethylene powder $56,024 Finishing kits Type I labor 227,890 25,480 Type II labor 31,250 Indirect materials 10,920 Manufacturing supplies 11,867 Maintenance and utilities 25,210 Supervision 22,000 Insurance 3,600 Depreciation 27,000 Total $441,241 (b) Prepare the flexible budget for manufacturing for the quarter ended March 31, 2020. Assume activity levels of 760, 860, and 910 units. (List variable costs before fixed costs. Round answers to 2 decimal places, e.g. 5,275.25.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2020 Units to be Produced 760 860 910 $4 $
Transcribed Image Text:Current Designs 10 (Part Level Submission) The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,440 kayaks during 2020. Each kayak will require 54 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.10 per pound, and the finishing kits cost $250 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $14 per hour, and the type II are paid $11 per hour. Manufacturing overhead is budgeted at $390,400 for 2020, broken down as follows. Variable costs Indirect materials $41,280 Manufacturing supplies 44,720 Maintenance and utilities 86,000 172,000 Fixed costs Supervision 96,000 Insurance 14,400 Depreciation 108,000 218,400 Total $390,400 During the first quarter, ended March 31, 2020, 910 units were actually produced with the following costs. Polyethylene powder $56,024 Finishing kits Type I labor 227,890 25,480 Type II labor 31,250 Indirect materials 10,920 Manufacturing supplies 11,867 Maintenance and utilities 25,210 Supervision 22,000 Insurance 3,600 Depreciation 27,000 Total $441,241 (b) Prepare the flexible budget for manufacturing for the quarter ended March 31, 2020. Assume activity levels of 760, 860, and 910 units. (List variable costs before fixed costs. Round answers to 2 decimal places, e.g. 5,275.25.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2020 Units to be Produced 760 860 910 $4 $
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