Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner's master budget and has assembled the following data for the coming year. The direct labor rate indludes wages, all employee- related benefits, and the employer's share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company's union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 6,100 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 percent of the following month's projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 37,200 34,400 39,800 40,400 Sales price per unit $83 $83 $77 $77 Direct labor hours per unit 2.70 2.70 2.40 2.40 Direct labor hourly rate $18 $18 $20 $20 Direct materials cost per unit $10 $10 $10 $10
Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner's master budget and has assembled the following data for the coming year. The direct labor rate indludes wages, all employee- related benefits, and the employer's share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company's union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 6,100 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 percent of the following month's projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 37,200 34,400 39,800 40,400 Sales price per unit $83 $83 $77 $77 Direct labor hours per unit 2.70 2.70 2.40 2.40 Direct labor hourly rate $18 $18 $20 $20 Direct materials cost per unit $10 $10 $10 $10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
9.1ab
Transcribed Image Text:Required:
Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit.
1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year.
a. Production budget in units:
Greiner Company
Production Budget (units)
For the First Quarter of the Coming Year
January February March
Total
Unit sales
Desired ending inventory
Total units required
Less: Beginning inventory
Units produced
b. Direct labor budget in hours: Round your answers to two decimal places, if required.
Greiner Company
Direct Labor Budget (hours)
For the First Quarter of the Coming Year
January February March
Total
Units produced
Direct labor hours per unit
Total labor budget (hours)
Transcribed Image Text:Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin
Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing
Greiner's master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-
related benefits, and the employer's share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the
company's union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 6,100
glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 percent of the following month's projected sales
in inventory. Information on the first four months of the coming year is as follows:
January February March April
Estimated unit sales
37,200
34,400 39,800 40,400
Sales price per unit
$83
$83
$77
$77
Direct labor hours per unit
2.70
2.70
2.40
2.40
Direct labor hourly rate
$18
$18
$20
$20
Direct materials cost per unit
$10
$10
$10
$10
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