NuFloor Manufacturing produces floor tiles. The managers at NuFloor are trying to develop budgets for the upcoming quarter. The following data have been gathered for a particular tile design. Projected unit sales 1,300 cases Selling price per case $ 240 Inventory at the beginning of the quarter 150 cases Target inventory at the end of the quarter 100 cases Direct labor hours needed to produce one case 2 hours Direct labor wages $ 10 per hour Direct material cost per case $ 8 Variable manufacturing overhead cost per case $ 6 Fixed overhead costs for the upcoming quarter $ 220,000 a. Using this information, develop NuFloor’s sales forecast in dollars and its schedule of production in units. b. What is NuFloor’s budgeted variable manufacturing cost per case? c. Prepare NuFloor’s manufacturing cost budget. d. What is the projected ending inventory value for this particular tile design?
NuFloor Manufacturing produces floor tiles. The managers at NuFloor are trying to develop budgets for the upcoming quarter. The following data have been gathered for a particular tile design. Projected unit sales 1,300 cases Selling price per case $ 240 Inventory at the beginning of the quarter 150 cases Target inventory at the end of the quarter 100 cases Direct labor hours needed to produce one case 2 hours Direct labor wages $ 10 per hour Direct material cost per case $ 8 Variable manufacturing overhead cost per case $ 6 Fixed overhead costs for the upcoming quarter $ 220,000 a. Using this information, develop NuFloor’s sales forecast in dollars and its schedule of production in units. b. What is NuFloor’s budgeted variable manufacturing cost per case? c. Prepare NuFloor’s manufacturing cost budget. d. What is the projected ending inventory value for this particular tile design?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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NuFloor Manufacturing produces floor tiles. The managers at NuFloor are trying to develop budgets for the upcoming quarter. The following data have been gathered for a particular tile design.
| Projected unit sales | 1,300 | cases | |
| Selling price per case | $ | 240 | |
| Inventory at the beginning of the quarter | 150 | cases | |
| Target inventory at the end of the quarter | 100 | cases | |
| Direct labor hours needed to produce one case | 2 | hours | |
| Direct labor wages | $ | 10 | per hour |
| Direct material cost per case | $ | 8 | |
| Variable manufacturing |
$ | 6 | |
| Fixed overhead costs for the upcoming quarter | $ | 220,000 | |
a. Using this information, develop NuFloor’s sales
b. What is NuFloor’s budgeted variable
c. Prepare NuFloor’s manufacturing cost budget.
d. What is the projected ending inventory value for this particular tile design?
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