Please do not give solution in image format thanku Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limitedhas developed the following estimates for unit sales in the upcoming year.Budgeted unit salesRequired production of lightsNumber of bulbs per lightTotal production needs-bulbsFirstQuarter25,100Each light requires two separate LED bulbs, each of which costs $2. To ensure enough LED bulbs are on hand to support short-termproduction if a problem arises with the sole supplier, Fortin Limited maintains an ending inventory of 10% of the following quarter'sproduction needs. A total of 5,400 LED bulbs will be on hand to start the first quarter of the upcoming fiscal year.Total needs-bulbsSecondQuarterThirdQuarter21,600 20,500Required:Prepare a direct materials purchases budget for LED bulbs, by quarter and in total, for the upcoming fiscal year. At the bottom of yourbudget, show the dollar amount of purchases for each quarter and for the year in total.Required purchases-bulbsTotal cost of purchasesFORTIN LIMITEDDirect Materials Budget-Year 2FourthQuarter21,700FirstSecondQuarterThirdFourthYear

The direct material purchase budget is the statement which is prepared by the entity for the purpose…

Answered: Fortin Limited produces and sells a…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 18M

See similar textbooks

Similar questions

Sinbo Electronics is trying to reduce supply chain risk by making more responsible make-buy decisions through improved cost estimation. A high-use component can be purchased for $25 per unit with delivery promised within a week. Alternatively, Sinbo can make the component in-house and have it readily available at a material cost of $3 per unit if equipment costing $155,000 is purchased. Labor and other operating costs are estimated to be $45,000 per year over the study period of 5 years. Salvage is estimated at 10% of the first cost, and the interest rate is 10% per year. Which one of the following values is closest to the break-even quantity? Select one: а. 3,789 b. 3,158 с. 6,341 d. 4,404 e. 11,160
Your bike helmet company is expecting demand for an additional 4,000 helmets in the upcoming year. While you have the capacity to handle the additional demand, a potential supplier has offered to make the 4,000 helmets for $9 per helmet. Other information from the financial accounting system is listed below. Should you make or buy the helmets? Commuter bike helmet Direct material Direct labor Manufacturing overhead: variable Non-manufacturing overhead: variable Total variable cost Manufacturing overhead: fixed Non-manufacturing overhead: fixed Total fixed cost Total cost Commuter helmet price Machine hour $6.54 $1.89 $1.07 $0.86 $10.36 $1.78 $0.98 $2.76 $13.12 $16.00 0.57
Disk City, Inc., is a retailer for digital video disks. The projected net income for the current year is $200,000 based on a sales volume of 200,000 video disks. Disk City has been selling the disks for $16 each. The variable costs consist of the $10 unit purchase price of the disks and a handling cost of $2 per disk. Disk City's annual fixed costs are S600,000. Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 30 percent. (Ignore income taxes.) Required: 1. Calculate Disk City's break-even point for the current year in number of video disks.
produces cell phone covers for all makes and models of cell phones. Cell Design sells 1,050,000 units each year at a price of $10 per unit and a contribution margin of 40%. LOADING... (Click the icon for additional information.) The current costs of quality are as follows: LOADING... (Click the icon to view the costs.) The QC manager and controller have forecast the following additional costs to modify the production process: LOADING... (Click the icon to view the additional costs.) Requirement If the improvements result in a 60% decrease in product replacement cost and a 70% decrease in customer returns, what is the impact on the overall COQ and the company's operating income? What should Cell Design do? Explain. What is the impact on the overall COQ and the company's operating income? (Use parentheses or a minus sign for a net cost.) Amount Benefits of quality improvements $409,500 Cost of making quality improvements…
Slavin Corporation manufactures two products, Alpha and Delta. Each product requires time on a single machine. The machine has a monthly capacity of 500 hours. Total market demand for the two products is limited to 170 units (each) monthly. Slavin is currently producing 110 Alphas and 110 Deltas each month. Cost and machine-usage data for the two products are shown in the following table, which Slavin managers use for planning purposes. Alpha Delta Total Price $ 125 $ 155 Less variable costs per unit Material 17 32 Labor 23 35 Overhead 14 14 Contribution margin per unit $ 71 $ 74 Fixed costs Manufacturing $ 7,400 Marketing and administrative $ 4,400 $ 11,800 Machine hours per unit 2.0 2.5 Machine hours used 495 Machine hours available 500 Quantity produced 110…
Mortech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and requires $1,500 per month in fixed costs. Mortech sells 200 cameras per month. If they process the camera further to enhance its functionality, it will require an additional $45 per unit of variable costs, plus an increase in fixed costs of $1,000 per month. The current price of the camera is $200. The marketing manager is positive that they can sell the same amount and charge a higher price for the improved version. At what price level would the upgraded camera begin to improve operational earnings?
Disk City, Inc., is a retailer for digital video disks. The projected net income for the current year is $2,260,000 based on a sales volume of 270,000 video disks. Disk City has been selling the disks for $17 each. The variable costs consist of the $5 unit purchase price of the disks and a handling cost of $2 per disk. Disk City’s annual fixed costs are $440,000. Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 20 percent. (Ignore income taxes.) Required:1. Calculate Disk City’s break-even point for the current year in number of video disks. (Round your final answer up to nearest whole number.)2. What will be the company’s net income for the current year if there is a 15 percent increase in projected unit sales volume?3. What volume of sales (in dollars) must Disk City achieve in the coming year to maintain the same net income as projected for the current year if the unit selling price remains at $17? (Do not…
Disk City, Inc., is a retailer for digital video disks. The projected net income for the current year is $2,260,000 based on a sales volume of 270,000 video disks. Disk City has been selling the disks for $17 each. The variable costs consist of the $5 unit purchase price of the disks and a handling cost of $2 per disk. Disk City’s annual fixed costs are $440,000. Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 20 percent. (Ignore income taxes.) Required:1. Calculate Disk City’s break-even point for the current year in number of video disks. (Round your final answer up to nearest whole number.)2. What will be the company’s net income for the current year if there is a 15 percent increase in projected unit sales volume?3. What volume of sales (in dollars) must Disk City achieve in the coming year to maintain the same net income as projected for the current year if the unit selling price remains at $17? (Do not…
Saved Neptune Company has developed a small inflatable toy that it is anxious to introduce to its customers. The company's Marketing Department estimates that demand for the new toy will range between 16,000 units and 36,000 units per month. The new toy will sel for $3.00 per unit. Enough capacity exists in the company's plant to produce 19,000 units of the toy each month. Variable expenses to manufacture and sell one unit would be $1.00, and incremental fixed expenses associated with the toy would total $27,000 per month. Neptune has also identified an outside supplier who could produce the toy for a price of $1.75 per unit plus a fixed fee of $20,000 per month for any production volume up to 21,000 units. For a production volume between 21,001 and 41,000 units the fixed fee would increase to a total of $40,000 per month. Required: 1. Calculate the break-even point in unit sales assuming that Neptune does not hire the outside supplier. 2. How much profit will Neptune earn assuming: a.…
Brahma Industries sells vinyl replacement windows to home improvement retailers nationwide. The national sales manager believes that if they invest an additional $25,000 in advertising, they would increase sales volume by 10,000 units. Prepare a forecasted contribution margin income statement for Brahma if they incur the additional advertising costs, using this information:
Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing itsoperating budget for the coming year. Selected data regarding the companys two products areas follows: Manufacturing overhead is applied to units using direct labor hours. Variable manufacturing overhead Ls projected to be 25,000, and fixed manufacturing overhead is expected to be15,000. The estimated cost to produce one unit of the laminated putter head is: a. 42. b. 46. c. 52. d. 62.
Haysbert Company provides management services for apartments and rental units. In general, Haysbert packages its services into two groups: basic and complete. The basic package includes advertising vacant units, showing potential renters through them, and collecting monthly rent and remitting it to the owner. The complete package adds maintenance of units and bookkeeping to the basic package. Packages are priced on a per-rental unit basis. Actual results from last year are as follows: Haysbert had budgeted the following amounts: Required: 1. Calculate the contribution margin variance. 2. Calculate the contribution margin volume variance. 3. Calculate the sales mix variance.

SEE MORE QUESTIONS

Recommended textbooks for you

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS