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 Indirect materials 31,250 10,920 Manufacturing supplies 11,867 Maintenance and utilities 25,210 Supervision 22,000 Insurance 3,600 Depreciation 27,000 Total $441,241 v (c) Assuming the rotomolded line is treated as a cost center, prepare a flexible budget report for manufacturing for the quarter ended March 31, 2020, when 910 units were produced. (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 Favorable Unfavorable Neither Favorable nor Unfavorable Difference Budget Actual By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.
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 Indirect materials 31,250 10,920 Manufacturing supplies 11,867 Maintenance and utilities 25,210 Supervision 22,000 Insurance 3,600 Depreciation 27,000 Total $441,241 v (c) Assuming the rotomolded line is treated as a cost center, prepare a flexible budget report for manufacturing for the quarter ended March 31, 2020, when 910 units were produced. (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 Favorable Unfavorable Neither Favorable nor Unfavorable Difference Budget Actual By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
(c)
Assuming the rotomolded line is treated as a cost center, prepare a flexible budget report for manufacturing for the quarter ended March 31, 2020, when 910 units were produced. (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
Favorable
Unfavorable
Neither Favorable nor Unfavorable
Difference
Budget
Actual
$
2$
2$
By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.
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