Nano CVBA is developing their manufacturing overhead budget for May, which is based on budgeted direct labor hours. Thevariable overhead rate is $13.70 per direct labor hour and 6,800 direct labor hours are budgeted for May. Fixedmanufacturing overhead is budgeted at $105,000. All overhead costs are current cash flows except for $5,250 ofdepreciation.What should the manufacturing overhead budget indicate for cash disbursements for manufacturing overhead for themonth of May?Answer:

The first step is to calculate the variable overhead. The variable overhead is the cost that changes…

Answered: Nano CVBA is developing their…

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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Yeaman has $13,000 in cash on hand on January 1 and has collected the following budget data: (Click on the icon to view the budget data) Assume direct labor costs and manufacturing overhead costs are paid in the month incurred. Additionally, assume Yeaman has cash payments for selling and administrative expenses including salaries of $65,000 per month plus commissions that are 1% of sales, all paid in the month of sale. The company requires a minimum cash balance of $1,000. Prepare a cash budget for January and February. Round to the nearest dollar. Will Yeaman need to borrow cash by the end of February? Begin by preparing the cash budget for January, then prepare the cash budget for February (Complete all input fields. Enter a "0" for any zero balances. Round all amounts entered into the cash budget to the nearest whole dollar.) Data table Sales Cash receipts from customers Cash payments for direct materials purchases Direct labor costs Manufacturing overhead costs (includes…
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Direct labor Indirect labor Utilities Supplies Equipment depreciation Cost Formulas The Production Department planned to work 4,300 labor-hours in March; however, it actually worked 4,100 labor-hours during the month. Its actual costs incurred in March are listed below: Factory rent Property taxes Factory administration $16.509 $4,400 $2.00q $5,000 + $0.50q $1,300+ $0.109 $18,500 + $2.60q $8,200 $2,400 $13,500+ $0.50q Actual Cost Incurred in March $ 69,270 $ 12,180 $ 7,540 $ 1,940 $ 29,160 $ 8,600 $ 2,400 $ 14,880 Required: 1. Prepare the Production…
Valley Trails is preparing the Cash Budget for the upcoming period, and is concerned about their ability to meet their financial obligations in the short term. Following is information relating to Valley’s financial performance: Beginning-of-period balances:Accounts Receivable: $135,000Accounts Payable: $67,500Accumulated Factory Depreciation: $720,000Cash: $33,750 Estimates for end-of-period balances:Accounts Receivable: $168,750Accounts Payable: $45,000Accumulated Factory Depreciation: $740,000 Budgeted activity levels for the period:Sales: $625,000Purchases of Direct Materials: $112,000Direct Labor Wages: $187,500Manufacturing Overhead: $62,500Selling and Administrative Expenses: $105,000 Except for purchases of direct materials, all expenses are paid as incurred. What is the budgeted ending cash balance for the period? Select one: a. None of these options are correct. b. $223,000 c. $191,750 d. $175,500 e. $155,500
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: Units to be produced Each unit requires 0.75 direct labor-hours, and direct laborers are paid $16.00 per hour. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 11,000 8,000 8,500 10,800 Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Required production in units Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost Rordan Corporation Direct Labor Budget 2nd Quarter 8,000 1st Quarter 11,000 8,250✔✔ Answer is not complete. $ 132,000 6,000 3rd Quarter 8,500 6,375 4th Quarter 10,800 S 96,000 $ 102,000 $ 8,100 129,600 Year
Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 12,000 hours for production: Variable overhead cost: Indirect factory labor $31,200 Power and light 9,120 Indirect materials 20,400 Total variable overhead cost $ 60,720 Fixed overhead cost: Supervisory salaries $45,600 Depreciation of plant and equipment 12,000 Insurance and property taxes 22,400 Total fixed overhead cost 80,000 Total factory overhead cost $140,720 Tannin has available 16,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 11,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead cost: Indirect factory labor $27,890 Power and…
Ramos Company provides the following (partial) production budget for the next three months. Each finished unit requires 0.50 hour of direct labor at the rate of $16 per hour. The company budgets variable overhead at the rate of $20 per direct labor hour and budgets fixed overhead of $8,000 per month. Production Budget Units to produce Required 1 Required 2 1. Prepare a direct labor budget for April, May, and June. 2. Prepare a factory overhead budget for April, May, and June. April 442 Complete this question by entering your answers in the tabs below. Units to produce May 570 Direct labor hours needed June 544 Prepare a direct labor budget for April, May, and June. (Enter your direct labor hours (hours) per unit in two decimal places.) Cost of direct labor RAMOS COMPANY Direct Labor Budget April 544 units
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Harper Manufacturing determines allocation rates as part of its annual budgeting process, which takes place 1 month before the beginning of the year. The company reports the following manufacturing overhead information as part of its budgeting process: Budgeted MOH Budgeted production (units) Budgeted direct labor hours Cost Pool Cost Pool 1 Cost Pool 2 Total Total Cost $ 6,000,000 $ 9,000,000 $ 15,000,000 $ 15,000,000 25,000,000 40,000 Allocation Base Unit Direct labor hour Question a. Assuming that Harper uses a traditional job costing system with a single allocation base (units), what is the predetermined overhead rate for the upcoming year? Note: Round your answer to 2 decimals. b. Assume Job 189 comprises 36 units and 2 direct labor hours. If Harper uses a traditional job costing system with a single allocation base (units), what is the total manufacturing overhead allocated to the job? Note: Round your answer to 2 decimals. c1. Now assume that Harper uses a two-stage job costing…
The total factory overhead for Big Light Company is budgeted for the year at $448,060. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 10,900 units. Each night light requires 3 hours of direct labor. Desk lamps are budgeted for 9,700 units. Each desk lamp requires 2 hours of direct labor. a. Determine the total number of budgeted direct labor hours for the year. direct labor hours b. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places. per direct labor hour c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places. Night lights $ per unit Desk lamps $ per unit
Katherin, Ltd. is developing their manufacturing overhead budget for May, which is based on budgeted direct labor hours. The variable overhead rate is $16.05 per direct labor hour and 11,552 direct labor hours are budgeted for May. Fixed manufacturing overhead is budgeted at $102,000. All overhead costs are current cash flows except for $15,300 of depreciation. The predetermined overhead rate every month is recomputed every month. What should the predetermined overhead rate for May be? Select one: A. $24.88 B. $26.20 C. $8.83 D. $17.66 E. $17.37

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