Paddle Away Corporation produces and sells one model of stand up paddle board (SUP). They have budgeted the following for the me May Budgeted selling price per SUP Budgeted sales for May Raw materials to produce one SUP Raw materials cost Direct labor required to produce one SUP Direct labor wage rate $ 98 per SUP sold 11,000 SUPS 5 pounds $ 3.00 per pound 2.5 direct labor-hours $.18.00 per direct labor-hour Predetermined overhead rate (all variable) $ 11.00 per direct labor-hour Variable selling and administrative expense $ 2.70 per unit sold. Fixed selling and administrative expense $ 80,000 per month For May, Paddle Away Corporation's estimated net operating income would be budgeted to be
Paddle Away Corporation produces and sells one model of stand up paddle board (SUP). They have budgeted the following for the me May Budgeted selling price per SUP Budgeted sales for May Raw materials to produce one SUP Raw materials cost Direct labor required to produce one SUP Direct labor wage rate $ 98 per SUP sold 11,000 SUPS 5 pounds $ 3.00 per pound 2.5 direct labor-hours $.18.00 per direct labor-hour Predetermined overhead rate (all variable) $ 11.00 per direct labor-hour Variable selling and administrative expense $ 2.70 per unit sold. Fixed selling and administrative expense $ 80,000 per month For May, Paddle Away Corporation's estimated net operating income would be budgeted to be
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Paddle Away Corporation produces and sells one model of stand up paddle board (SUP). They have budgeted the following for the month of
May
Budgeted selling price per SUP
Budgeted sales for May
Raw materials to produce one SUP
Raw materials cost
Direct labor required to produce one SUP
Direct labor wage rate
$ 98 per SUP sold
11,000 SUPS
5 pounds
$3.00 per pound
2.5 direct labor-hours
$.18.00 per direct labor-hour
Predetermined overhead rate (all variable)
Variable selling and administrative expense
$ 11.00 per direct labor-hour
$2.70 per unit sold
Fixed selling and administrative expense
$ 80,000 per month
For May, PaddleAway Corporation's estimated net operating income would be budgeted to be
Transcribed Image Text:O
O
O
O
$35,500
$42,000
$5,800
$85,800
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