Donner Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker, models. The production budget for March for the two rackets is as follows: Junior Pro Striker Production budget 8,200 units 21,100 units Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows: Forming Department Assembly Department Junior 0.25 hours per unit 0.40 hours per unit Pro Striker 0.35 hours per unit 0.70 hours per unit The direct labor rate for each department is as follows: Forming Department $17 per hour Assembly Department $11 per hour Prepare the direct labor cost budget for March. Snobby CrabShack expects to make purchases in the first quarter of 2009 as follows: January $ 84,000 February $ 96,000 March $ 78,000 Purchases in December in 2008 are expected to be $87,000. The company expects that 55% of a month's purchases will be paid in the month of purchase and 45% will be paid in the following month. Other cash operating expenses per month are $60,000. In addition, the company has $8,000 of depreciation per month. Estimate cash disbursements related to purchases for each month of the first quarter of 2009. What are the accounts payable related to purchases at March 31, 2009?
Donner Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker, models. The production budget for March for the two rackets is as follows: Junior Pro Striker Production budget 8,200 units 21,100 units Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows: Forming Department Assembly Department Junior 0.25 hours per unit 0.40 hours per unit Pro Striker 0.35 hours per unit 0.70 hours per unit The direct labor rate for each department is as follows: Forming Department $17 per hour Assembly Department $11 per hour Prepare the direct labor cost budget for March. Snobby CrabShack expects to make purchases in the first quarter of 2009 as follows: January $ 84,000 February $ 96,000 March $ 78,000 Purchases in December in 2008 are expected to be $87,000. The company expects that 55% of a month's purchases will be paid in the month of purchase and 45% will be paid in the following month. Other cash operating expenses per month are $60,000. In addition, the company has $8,000 of depreciation per month. Estimate cash disbursements related to purchases for each month of the first quarter of 2009. What are the accounts payable related to purchases at March 31, 2009?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 3E: Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost...
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Transcribed Image Text:Donner Racket Company manufactures two types of tennis rackets, the
Junior and Pro Striker, models. The production budget for March for the
two rackets is as follows:
Junior
Pro Striker
Production budget 8,200 units
21,100 units
Both rackets are produced in two departments, Forming and Assembly.
The direct labor hours required for each racket are estimated as follows:
Forming Department
Assembly Department
Junior
0.25 hours per unit
0.40 hours per unit
Pro Striker
0.35 hours per unit
0.70 hours per unit
The direct labor rate for each department is as follows:
Forming Department
$17 per hour
Assembly Department $11 per hour
Prepare the direct labor cost budget for March.
Snobby CrabShack expects to make purchases in the first quarter of
2009 as follows:
January
$ 84,000
February
$ 96,000
March
$ 78,000
Purchases in December in 2008 are expected to be $87,000. The
company expects that 55% of a month's purchases will be paid in the
month of purchase and 45% will be paid in the following month. Other
cash operating expenses per month are $60,000. In addition, the
company has $8,000 of depreciation per month.
Estimate cash disbursements related to purchases for each month of
the first quarter of 2009. What are the accounts payable related to
purchases at March 31, 2009?
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