Data regarding the current year's production for the Mona Loa and Malaysian lines follow. There is no beginning orending direct materials inventory for either of these coffees.Malaysian2,000 pounds500 poundsMona Loa100,000 pounds10,000 poundsper batch25,000 pounds1 hour per 100 pounds0.5 hour per 100 pounds0.1 hour per 100 poundsBudgeted salesBatch size3 per batch500 pounds1 hour per 100 pounds0.5 hour per 100 pounds0.1 hour per 100 poundsSetupsPurchase order sizeRoasting timeBlending timePackaging timethe table below, i.e. processing 1,640 purchase orders, 2,640has total practical capacity as notecsetups, etc. These are the levels of activity work that are sustainable.CoВеPracticalСaраcity1,6402,6401,440102,40038,40032,400ActivityPurchasingMaterials handlingQuality controlRoastingBlendingPackagingRequired:1. Determine the activity rates based on practical capacity and the cost of idle capacity for each activity. (Round"Usage %" and "Practical Capactity Rate" to 2 decimal places. For percentages .1234 = 12.34%.)%3D Coffee Bean Incorporated (CBI) processes and distributes high-quality coffee. CBI buys coffee beans from aroundthe world and roasts, blends, and packages them for resale. Currently, the firm offers 2 coffees to gourmet shops in1-pound bags. The major cost is direct materials; however, a substantial amount of factory overhead is incurred inthe predominantly automated roasting and packing process. The company uses relatively little direct labor.CBI prices its coffee at full product cost, including allocated overhead, plus a markup of 30%. If its prices aresignificantly higher than the market, CBI lowers its prices. The company competes primarily on the quality of itsproducts, but customers are price conscious as well.Data for the current budget include factory overhead of $3,168,000, which has been allocated on the basis of eachproduct's direct labor cost. The budgeted direct labor cost for the current year totals $600,000. The firm budgeted$6,000,000 for purchase and use of direct materials (mostly coffee beans).The budgeted direct costs for 1-pound bags are as follows:Malaysian$ 3.20Mona LoaDirect materials$ 4.20Direct labor0.300.30CBI's controller, Mona Clin, believes that its current product costing system could be providing misleading costinformation. She has developed this analysis of the current year's budgeted factory overhead costs:BudgetedDriverBudgeted Cost$ 639,000768,000168,000973,000348,000ActivityPurchasingMaterials handlingConsumption1,2781,920Cost DriverPurchase ordersSetupsQuality controlRoastingBlendingBatches840Roasting hoursBlending hoursPackaging hours97,30034,800272,000$ 3,168,000Packaging27,200Total factory overhead cost

Activity Rates = Budgeted CostBudgeted Driver Consumption

Data regarding the current year's production for the Mona Loa and Malaysian lines follow. There is no beginning or ending direct materials inventory for either of these coffees. Malaysian 2,000 pounds 500 pounds 3 per batch 500 pounds 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds Mona Loa Budgeted sales Batch size 100,000 pounds 10,000 pounds 3 per batch 25,000 pounds 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds Setups Purchase order size Roasting time Blending time Packaging time Coffee Bean has total practical capacity as noted in the table below, i.e. processing 1,640 purchase orders, 2,640 setups, etc. These are the levels of activity work that are sustainable. Practical Activity Purchasing Materials handling Quality control Roasting Blending Packaging Сарacity 1,640 2,640 1,440 102,400 38,400 32,400 Required: 1. Determine the activity rates based on practical capacity and the cost of idle capacity for each activity. (Round "Usage %" and "Practical Capactity Rate" to 2 decimal places. For percentages .1234 = 12.34%.)

Data regarding the current year's production for the Mona Loa and Malaysian lines follow. There is no beginning or ending direct materials inventory for either of these coffees. Malaysian 2,000 pounds 500 pounds 3 per batch 500 pounds 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds Mona Loa Budgeted sales Batch size 100,000 pounds 10,000 pounds 3 per batch 25,000 pounds 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds Setups Purchase order size Roasting time Blending time Packaging time Coffee Bean has total practical capacity as noted in the table below, i.e. processing 1,640 purchase orders, 2,640 setups, etc. These are the levels of activity work that are sustainable. Practical Activity Purchasing Materials handling Quality control Roasting Blending Packaging Сарacity 1,640 2,640 1,440 102,400 38,400 32,400 Required: 1. Determine the activity rates based on practical capacity and the cost of idle capacity for each activity. (Round "Usage %" and "Practical Capactity Rate" to 2 decimal places. For percentages .1234 = 12.34%.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Ponderosa, Inc., produces wiring harness assemblies used in the production of semi-trailer trucks. The wiring harness assemblies are sold to various truck manufacturers around the world. Projected sales in units for the coming five months are given below. January 10,000 February 10,500 March 13,900 April 16,000 May 18,500 The following data pertain to production policies and manufacturing specifications followed by Ponderosa: Finished goods inventory on January 1 is 900 units. The desired ending inventory for each month is 20 percent of the next month’s sales. The data on materials used are as follows: Direct Material Per-Unit Usage Unit Cost Part #K298 2 $4 Part #C30 3 7 Inventory policy dictates that sufficient materials be on hand at the beginning of the month to satisfy 30 percent of the next month’s production needs. This is exactly the amount of material on hand on January 1. The direct labor used per unit of…
Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming 5 months follow: January 40,000 February 50,000 March 60,000 April 60,000 May 62,000 The following data pertain to production policies and manufacturing specifications followed by Allison Manufacturing: Finished goods inventory on January 1 is 32,000 units, each costing $166.06. The desired ending inventory for each month is 80% of the next month's sales. The data on materials used are as follows: Direct Material Per-Unit Usage DM Unit Cost ($) Metal 10 lbs. 8 Components 6 5 Inventory policy dictates that sufficient materials be on hand at the end of the month to produce 50% of the next month's production needs. This is exactly the amount of material on hand on December 31 of the prior year. The direct labor used per unit of…
45. According to the GAM for NGAs, disbursements for salaries and wages shall be supported by: Disbursement vouchers Payroll Petty cash vouchers Official receipts
Fact Pattern: Atlas Foods produces the following three supplemental food products simultaneously through a refining process costing $93,000. The joint products, Alfa and Betters, have a final selling price of $4 per pound and $10 per pound, respectively, after additional processing costs of $2 per pound of each product are incurred after the split-off point. Morefeed, a by- product, is sold at the split-off point for $3 per pound. O A. $60,000 $31,000 $3,000 $30,000 O B. C. Alfa D. Betters Assuming Atlas Foods inventories Morefeed, the by-product, the joint cost to be allocated to Alfa using the net realizable value method is 10,000 pounds of Alfa, a popular but relatively rare grain supplement having a caloric value of 4,400 calories per pound 5,000 pounds of Betters, a flavoring material high in carbohydrates with a caloric value of 11,200 calories per pound Morefeed 1,000 pounds of Morefeed, used as a cattle feed supplement with a caloric value of 1,000 calories per pound
Please do not give solution in image format thanku
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company's products. The company is planning its raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must equal 2,000 units of Supermix plus 25% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 20,250 units. b. The raw materials inventory on hand at the end of each month must equal one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 111,375 cc of solvent H300. c. The company maintains no work in process inventories. A monthly sales budget for Supermix for the third…
Direct Materials Purchases Budget Soda Company is the largest bottler in Western Europe. The company purchases Brand 1 and Brand 2 concentrate from The Soda Company, dilutes and mixes the concentrate with carbonated water, and then fills the blended beverage into cans or plastic two-liter bottles. Assume that the estimated production for Brand 1 and Brand 2 two-liter bottles at the Wakefield, UK, bottling plant are as follows for the month of May: Brand 1 67,000 two-liter bottles Brand 2 51,000 two-liter bottles In addition, assume that the concentrate costs $70 per pound for both Brand 1 and Brand 2 and is used at a rate of 0.1 pound per 100 liters of carbonated water in blending Brand 1 and 0.15 pound per 100 liters of carbonated water in blending Brand 2. Assume that two liters of carbonated water are used for each two-liter bottle of finished product. Assume further that two-liter bottles cost $0.075 per bottle and carbonated water costs $0.055 per liter. Prepare a direct…
2. Lens Junction has required production of 15,400 units in January and 18,100 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound and 3 ounces of solution costing $3 per ounce. Desired inventory levels are: Jan. Feb. Mar. Beginning Inventory: Finished Goods (units) 4,500 4,900 5,000 DM - Silicon (pounds) 8,500 9,100 9,200 DM - Solution (ounces) 11,200 12,000 13,000 PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e. 1,234) - no labels. All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345), except for any "per" amounts (units, pounds, ounces, or dollars), which are rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56) - no labels. Cost per Pound Desired Ending Inventory DM per Unit Ounces Needed for Production Required DM Ounces Pounds Needed for Production Units to be Produced Total Cost of DM Purchase Required DM Pounds…
Do not give answer in image
Ponderosa, Inc., produces wiring harness assemblies used in the production of semi-trailer trucks. The wiring harness assemblies are sold to various truck manufacturers around the world. Projected sales in units for the coming five months are given below. January 10,000 February 10,500 March 13,900 April 16,000 May 18,500 The following data pertain to production policies and manufacturing specifications followed by Ponderosa: Finished goods inventory on January 1 is 900 units. The desired ending inventory for each month is 20 percent of the next month’s sales. The data on materials used are as follows: Direct Material Per-Unit Usage Unit Cost Part #K298 2 $4 Part #C30 3 7 Inventory policy dictates that sufficient materials be on hand at the beginning of the month to satisfy 30 percent of the next month’s production needs. This is exactly the amount of material on hand on January 1. The direct labor used per unit of…