MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 directlabor hour at a rate of $12 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is$11,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's directmaterials requirement. At the end of August the company had 2,580 pounds of direct materials in Inventory. The company's productionbudget reports the following.Production BudgetUnits to produceSeptember4,380(1) Prepare direct materials budgets for September and October.(2) Prepare direct labor budgets for September and October.(3) Prepare factory overhead budgets for September and October.Units to produceComplete this question by entering your answers in the tabs below.October6,880Required 1 Required 2Prepare direct materials budgets for September and October.Total materials required (pounds)Materials needed for production (pounds)Materials to purchase (pounds)November6,100Required 3Cost of direct materials purchasesMCO LeatherDirect Materials BudgetSeptember October$0 S000

MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hour at a rate of $12 per hour. Varlable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $11,000 per month. The company's policy is to end each month with direct materialis Inventory equal to 30% of the next month's direct materials requirement. At the end of August the company had 2,580 pounds of direct materials in Inventory. The company's productio budget reports the following. Production Budget Units to produce September 4,300 (1) Prepare direct materials budgets for September and October. (2) Prepare direct labor budgets for September and October. (3) Prepare factory overhead budgets for September and October. Units to produce Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare direct materials budgets for September and October. MCO Leather Direct Materials Budget Materials needed for production (pounds) October 6,800 Total materials required (pounds) November 6,100 Materials to purchase (pounds) Cost of direct materials purchases September 0 0 OS October 0 0 11

MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hour at a rate of $12 per hour. Varlable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $11,000 per month. The company's policy is to end each month with direct materialis Inventory equal to 30% of the next month's direct materials requirement. At the end of August the company had 2,580 pounds of direct materials in Inventory. The company's productio budget reports the following. Production Budget Units to produce September 4,300 (1) Prepare direct materials budgets for September and October. (2) Prepare direct labor budgets for September and October. (3) Prepare factory overhead budgets for September and October. Units to produce Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare direct materials budgets for September and October. MCO Leather Direct Materials Budget Materials needed for production (pounds) October 6,800 Total materials required (pounds) November 6,100 Materials to purchase (pounds) Cost of direct materials purchases September 0 0 OS October 0 0 11

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hour at a rate of $17 per hour. Variable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $14,000 per month. The company’s policy is to end each month with direct materials inventory equal to 30% of the next month’s direct materials requirement. At the end of August the company had 2,880 pounds of direct materials in inventory. The company’s production budget reports the following. Production Budget September October November Units to produce 4,800 6,800 6,400 (1) Prepare direct materials budgets for September and October.(2) Prepare direct labor budgets for September and October.(3) Prepare factory overhead budgets for September and October.
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Boxer Manufacturing produces luxury dog houses. Each dog house requires 4.0 hours of machine time for its elaborate trim and finishing. For the current year, Boxer calculated its predetermined fixed manufacturing overhead (MOH) rate to be $20 per machine hour. The company budgets its fixed MOH to be $202,000 per month. Last month, Boxer produced 2,000 dog houses and incurred $196,400 (actual) of fixed MOH. Read the requirements. Requirement 1. Calculate the fixed overhead budget variance Begin by determining the formula for the fixed overhead budget variance, then compute the variance. (Enter the variance as a positive number. Label the variance as favorable (F) or unfavorable (U) in the input field after the amount you enter.) Fixed MOH budget variance
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Ceder Company has compiled the following data for the upcoming year: Sales are expected to be 16,000 units at $52 each. Each unit requires 4 pounds of direct materials at $2.40 per pound. Each unit requires 2.1 hours of direct labor at $13 per hour. Manufacturing overhead is $4.90 per unit. Beginning direct materials inventory is $5,400. Ending direct materials inventory is $6,950. Selling and administrative costs totaled $138,720. Determine Ceder's budgeted cost of goods sold. Complete Ceder's budgeted income statement.
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