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Hazlett, Inc., operates at capacity and makes plastic combs and hairbrushes. Although the combs and brushes are a matching set, they are sold individually and so the sales mix is not 1:1. Hazlett's management is planning its annual budget for fiscal year 2018. Hazlett accounts for direct materials and ending finished goods using a FIFO cost flow assumption. Here is information for 2018: Input Prices Direct Materials Plastic Bristes $0.31 per ounce $0.77 per bunch $12 per hour Direct Labor Input Consumption Combs Brushes Direct Materials Plastic 5.1 ounces 8.7 ounces 15 bunches 0.27 hour Bristes Direct Labor Machine Hours (MH) 0.051 hour 0.022 MH 0.15 MH Inventory Beginning Inventory Target Ending Inventory Cost of Beginning Inventory Plastic 1,610 ounces 1 570 bunches 1,762 ounces 2,252 bunches $416 Bristles $1,719 Sales and Inventory Expected Sales in units Selling Price Target Ending lnventory in units Beginning Inventory in units Beginning Inventory in dollars Combs Brushes 12,100 14,700 89 832 1,500 1,410 1,270 G01 $2,720 $27,580

Hazlett, Inc., operates at capacity and makes plastic combs and hairbrushes. Although the combs and brushes are a matching set, they are sold individually and so the sales mix is not 1:1. Hazlett's management is planning its annual budget for fiscal year 2018. Hazlett accounts for direct materials and ending finished goods using a FIFO cost flow assumption. Here is information for 2018: Input Prices Direct Materials Plastic Bristes $0.31 per ounce $0.77 per bunch $12 per hour Direct Labor Input Consumption Combs Brushes Direct Materials Plastic 5.1 ounces 8.7 ounces 15 bunches 0.27 hour Bristes Direct Labor Machine Hours (MH) 0.051 hour 0.022 MH 0.15 MH Inventory Beginning Inventory Target Ending Inventory Cost of Beginning Inventory Plastic 1,610 ounces 1 570 bunches 1,762 ounces 2,252 bunches $416 Bristles $1,719 Sales and Inventory Expected Sales in units Selling Price Target Ending lnventory in units Beginning Inventory in units Beginning Inventory in dollars Combs Brushes 12,100 14,700 89 832 1,500 1,410 1,270 G01 $2,720 $27,580

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Calculate budgeted unit production cost of comb.

Hazlett, Inc., operates at capacity and makes plastic combs and hairbrushes. Although the combs and brushes are a matching set, they are sold individually and so the sales mix is not 1:1. Hazlett's management is planning its annual budget for fiscal year 2018. Hazlett accounts for direct materials and ending finished goods using a FIFO cost flow assumption. Here is information for 2018: Input Prices Direct Materials Plastic Bristes Direct Labor $0.31 per ounce $0.77 per bunch $12 per hour Input Consumption Combs Direct Materials Brushes Plastie 5.1 ounces 8.7 ounces 15 bunches 0.27 hour Bristes Direct Labor Machine Hours (MH) 0.051 hour 0.022 MH 0.15 MH Inventory Beginning Inventory Target Ending Inventory Cost of Beginning Inventory Plastic 1,610 ounces 1870 bunches 1,762 ounces 2,252 bunches $416 Bristles $1,719 Sales and Inventory Expected Sales in units Selling Price Target Ending Iuventory in units Beginning Inventory in units Beginning Inventory in dollars Combs Brushes 12,100 14,700 832 1,410 1,500 601 1,270 $2,720 $27,580 Combs are manufactured in batches of 200, and brushes are manufactured in batches of 100. It takes 21 minutes to set up for a batch of combs and 1 hour to set up for a batch of brushes. Hazlett uses activity-based costing and has classified all overhead costs as shown in the following table. Budgeted fixed overhead costs vary with capacity. Hazlett operates at capacity so budgeted fixed overhead cost per unit equals the budgeted fixed overhead costs divided by the budgeted quantities of the cost allocation base. Delivery trucks transport units sold in delivery sizes of 1,000 combs or 1,000 brushes. Manufacturing Cost Type Budgeted Variable Budgeted Fixed Cost Driver/Allocation Base Materials handling Setup Processing Inspection Numbers of ounces of plastic used S11,235 s10,245 $11,640 s10,100 322,700 $16,650 $35,000 $1,570 Setup hours Machine hours Number of units produced Non-Manufacturing Cost Type Budgeted Variable Budgeted Fixed Cost Driver/Allocation Base Marketing Distribution $22,150 $90,000 81,150 Sales revenue Number of deliveries
Transcribed Image Text:Hazlett, Inc., operates at capacity and makes plastic combs and hairbrushes. Although the combs and brushes are a matching set, they are sold individually and so the sales mix is not 1:1. Hazlett's management is planning its annual budget for fiscal year 2018. Hazlett accounts for direct materials and ending finished goods using a FIFO cost flow assumption. Here is information for 2018: Input Prices Direct Materials Plastic Bristes Direct Labor $0.31 per ounce $0.77 per bunch $12 per hour Input Consumption Combs Direct Materials Brushes Plastie 5.1 ounces 8.7 ounces 15 bunches 0.27 hour Bristes Direct Labor Machine Hours (MH) 0.051 hour 0.022 MH 0.15 MH Inventory Beginning Inventory Target Ending Inventory Cost of Beginning Inventory Plastic 1,610 ounces 1870 bunches 1,762 ounces 2,252 bunches $416 Bristles $1,719 Sales and Inventory Expected Sales in units Selling Price Target Ending Iuventory in units Beginning Inventory in units Beginning Inventory in dollars Combs Brushes 12,100 14,700 832 1,410 1,500 601 1,270 $2,720 $27,580 Combs are manufactured in batches of 200, and brushes are manufactured in batches of 100. It takes 21 minutes to set up for a batch of combs and 1 hour to set up for a batch of brushes. Hazlett uses activity-based costing and has classified all overhead costs as shown in the following table. Budgeted fixed overhead costs vary with capacity. Hazlett operates at capacity so budgeted fixed overhead cost per unit equals the budgeted fixed overhead costs divided by the budgeted quantities of the cost allocation base. Delivery trucks transport units sold in delivery sizes of 1,000 combs or 1,000 brushes. Manufacturing Cost Type Budgeted Variable Budgeted Fixed Cost Driver/Allocation Base Materials handling Setup Processing Inspection Numbers of ounces of plastic used S11,235 s10,245 $11,640 s10,100 322,700 $16,650 $35,000 $1,570 Setup hours Machine hours Number of units produced Non-Manufacturing Cost Type Budgeted Variable Budgeted Fixed Cost Driver/Allocation Base Marketing Distribution $22,150 $90,000 81,150 Sales revenue Number of deliveries
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