Margaret had just finished the production budget for her division and now needs to further consider related cash needs. Since laborcosts are a significant cash outflow for her company, she opts to complete that budget next. The production budget ended as followsfor the second quarter.Production (units)Month 17,300Textbook and MediaMonth 29,800Every unit requires 3.40 hours of DL time, which is estimated to cost the company $18/hour. Help Margaret prepare the direct laborbudget for her company for the second quarter, identifying total DL hours as well as total DL cost for each month and for the quarteras a whole. (Round hours per unit to 2 decimal places, e.g. 15.25.)$Month 3$7,000Month 1$Month 2$$Month 3

The budget is prepared to estimate the requirements for the future period. The direct labor budget…

Margaret had just finished the production budget for her division and now needs to further consider related cash needs. Since labor costs are a significant cash outflow for her company, she opts to complete that budget next. The production budget ended as follows for the second quarter. Production (units) Month 1 7,300 Month 2 9,800 Month 3 7,000 Every unit requires 3.40 hours of DL time, which is estimated to cost the company $18/hour. Help Margaret prepare the direct labor budget for her company for the second quarter, identifying total DL hours as well as total DL cost for each month and for the quarter as a whole. (Round hours per unit to 2 decimal places, e.g. 15.25.)

Margaret had just finished the production budget for her division and now needs to further consider related cash needs. Since labor costs are a significant cash outflow for her company, she opts to complete that budget next. The production budget ended as follows for the second quarter. Production (units) Month 1 7,300 Month 2 9,800 Month 3 7,000 Every unit requires 3.40 hours of DL time, which is estimated to cost the company $18/hour. Help Margaret prepare the direct labor budget for her company for the second quarter, identifying total DL hours as well as total DL cost for each month and for the quarter as a whole. (Round hours per unit to 2 decimal places, e.g. 15.25.)

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

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 64 students enrolled in those two courses. Data concerning the company’s cost formulas appear below: Fixed Cost per Month Cost per Course Cost per Student Instructor wages $ 2,920 Classroom supplies $ 300 Utilities $ 1,250 $ 55 Campus rent $ 4,900 Insurance $ 2,200 Administrative expenses $ 3,700 $ 42 $ 6 For example, administrative expenses should be $3,700 per month plus $42 per course plus $6 per student. The company’s sales should average $850 per student. The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 62 students. The actual operating results for September…
i need the answer quickly
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 64 students enrolled in those two courses. Data concerning the company’s cost formulas appear below: Fixed Cost per Month Cost per Course Cost per Student Instructor wages $ 2,920 Classroom supplies $ 300 Utilities $ 1,250 $ 55 Campus rent $ 4,900 Insurance $ 2,200 Administrative expenses $ 3,700 $ 42 $ 6 For example, administrative expenses should be $3,700 per month plus $42 per course plus $6 per student. The company’s sales should average $850 per student. The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 62 students. The actual operating results for September…
Sarah has learned a lot from you over the past two months, and has compiled the following data for Sole Purpose Shoe Company for September using the techniques you taught her. She would like your help in preparing a Budget Performance Report for September. The company produced 3,000 pairs of shoes that required 10,500 units of material purchased at $8.20 per unit and 8,100 hours of labor at an hourly rate of $8.90 per hour during the month. Actual factory overhead during September was $24,300. When entering variances, use a negative number for a favorable cost variance, and a positive number for an unfavorable cost variance. Use the data in the following table to prepare the Budget Performance Report for Sole Purpose Shoe Company for September. Manufacturing Costs StandardPrice StandardQuantity StandardCostPer Unit Direct materials $8.40 per unit 3.60 units per pair $30.24 Direct labor $8.50 per hour 2.80 hours per pair 23.80 Factory overhead $2.70 per hour 2.80 hours per pair…
The Charmatz Corporation has a central copying facility. Its offices can supply up to 800,000 copies per year. The copying facility has only two users, Department A and Department B. The following data apply to the coming budget year: Budgeted costs of Copy Support Department are: Fixed costs per year $70,000 per year Variable costs $0.02 per copy The operating departments have estimated their usage as follows: Department A 120,000 copies Department B 480,000 copies Actual usage for the year was: Department A 150,000 copies Department B 450,000 copies Budgeted amounts are used to calculate the allocation rates. Actual usage is used to allocate costs under the single-rate method. Actual usage is used to allocate variable costs and budgeted usage is used to allocate fixed costs under the dual-rate method. How will…
Joseph is working on the budget for his summer window-washing business, trying to figure out what his total costs are going to be for the season. He has monthly data from last summer, so he decided to start with that. Using the observations below, use the high-low method to estimate a total monthly cost function for Joseph's business. Month 1 2 3 Number of Labor Hours Spent Y = $ 60 105 85 (Round answers to 2 decimal places, e.g. 15.25.) X + $ Total Cost $196 $322 $250
Jason is in the furniture business. He observed increasing demand for office chairs, and strongly anticipates even better results in the next quarter. Jason decides to reconsider his production plans, and he comes up with the following production budget for the second quarter: April May June 600 units 650 units 710 units A Jason determines that every unit needs 2 hours of direct labor (DL) time. He pays $24 per hour to his daily wage workers. Considering the given information, which of the following is correct? O For the second quarter. total DL hours and total DL cost will be 3980 and $92640 respectively. O For the second quarter, total DL hours and total DL cost will be 1200 and $28800 respectively. O For the second quarter, total DL hours and total DL cost will be 3920 and $94080 respectively. O For the second quarter, total DL hours and total DL cost will be 1300 and $31200 respectively.
Ruth, the owner of Crystal Clean, is planning for the next year. She uses the absorption method to determine the evaluation of employees and how much to increase their hourly wage. She has budgeted the following information: Variable operating expenses $4 per unitFixed operating expenses $211900 Variable manufacturing cost $11 per unitFixed manufacturing cost $253000 Units to be produced 25300 unitsUnit selling price $31 per unit Year 1 Year 2 Beginning inventory (units) 0 1400 Actual production (units) 23800 25800 Sales volume (units) 22400 26500 There were no price or efficiency variances for either year. Ruth writes off any fixed MOH volume variance directly to COGS. Calculate the gross margin for year 1.…
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 62 students enrolled in those two courses. Data concerning the company’s cost formulas appear below: Fixed Cost per Month Cost per Course Cost per Student Instructor wages $ 2,930 Classroom supplies $ 270 Utilities $ 1,230 $ 65 Campus rent $ 5,200 Insurance…
The company just hired a new marketing manager who insists unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Year 2 Quarter Year 3 Quarter Data 1 2 3 4 1 2 Budgeted unit sales 45,000 65,000 105,000 60,000 90,000 100,000 Selling price per unit $7 What is the total cost of raw materials to be purchased for the year under this revised budget?