Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution MarginGreiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner's master budget and hasassembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer's share of FICA. Labor saving machinerywill be fully operational by March. Also, as of March 1, the company's union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greinerexpects to have 5,900 glare filters in inventory on December 31 of the current year, and has a policy of carrying 30 percent of the following month's projected sales in inventory.Information on the first four months of the coming year is as follows:January February March AprilEstimated unit sales35,60034,800 40,600 38,800Sales price per unit$80$80$76$76Direct labor hours per unit2.702.702:402.40Direct labor hourly rate$16$16$18$18Direct materials cost per unit$10$10$10S10Required:Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit.1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year.a. Production budget in units:Greiner CompanyProduction Budget (units)For the First Quarter of the Coming YearJanuary February MarchTotalUnit salesDesired ending inventoryTotal units requiredLess: Beginning inventoryUnits producedb. Direct labor budget in hours: Round your answers to two decimal places, if required.Greiner CompanyDirect Labor Budget (hours)For the First Quarter of the Coming YearJanuary February MarchTotalUnits producedDirect labor hours per unitTotal labor budget (hours)c. Direct materials cost budget:Greiner CompanyDirect Materials Cost RudgetCheck My Work 10 more Check My Work uses remainingPrevious CP8: Problems for Budgeting Part 2Units producedb. Direct labor budget in hours: Round your answers to two decimal places, if required.Greiner CompanyDirect Labor Budget (hours)For the First Quarter of the Coming YearJanuary February MarchTotalUnits producedDirect labor hours per unitTotal labor budget (hours)c. Direct materials cost budget:Greiner CompanyDirect Materials Cost BudgetFor the First Quarter of the Coming YearJanuary February MarchTotalUnits producedCost per unitTotal direct materials $d. Sales budget: Round unit selling price amounts to the nearest cent and use the same for subsequent requirements.Greiner CompanySales Budget (dollars)For the First Quarter of the Coming YearJanuary February MarchTotalUnit salesUnit selling priceTotal sales revenue2. Calculate the total budgeted contribution margin for Greiner Company by month and in total for the first quarter of the coming year. (CMA adapted)Greiner CompanyBudgeted Contribution MarginFor the First Quarter of the Coming YearJanuary February MarchTotalSales revenueDirect labor costMaterials costContribution marginCheck My Work 10 more Check My Work uses remaining.

The budgets are prepared to estimate the requirements for the period for the required production or…

Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner's master budget and has assembled the following data for the coming year. The direct labor rate includes vwages, all employee-related benefits, and the employer's share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company's union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,900 glare filters in inventory on December 31 of the current year, and has a policy of carrying 30 percent of the following month's projected sales in inventory. Information on the first four months of the coming year is as follows: 三T January February March April Estimated unit sales 35,600 34,800 40,600 38,800 Sales price per unit $80 $80 $76 $76 Direct labor hours per unit 2.70 2.70 2:40 2.40 Direct labor hourly rate $16 $16 $18 $18 Direct materials cost per unit $10 $10 $10 $10 Required: Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit. 1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year. a. Production budget in units:

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q