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 wages, 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 6,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 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 April Estimated unit sales 37,200 35,400 40,000 40,000 Sales price per unit $80 $80 $75 $75 Direct labor hours per unit 2.80 2.80 2.50 2.50 Direct labor hourly rate $19 $19 $20 $20 Diroct atorialc coct por unit
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 wages, 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 6,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 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 April Estimated unit sales 37,200 35,400 40,000 40,000 Sales price per unit $80 $80 $75 $75 Direct labor hours per unit 2.80 2.80 2.50 2.50 Direct labor hourly rate $19 $19 $20 $20 Diroct atorialc coct por unit
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 38P: Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven,...
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Question
![Direct Materials Cost Budget
For the First Quarter of the Coming Year
January
February March
Total
Units produced
Cost per unit
Total direct materials
d. Sales budget: Round unit selling price amounts to the nearest cent and use the same for subsequent requirements.
Greiner Company
Sales Budget (dollars)
For the First Quarter of the Coming Year
January
February March
Total
Unit sales
Unit selling price
Total sales revenue
2. 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 Company
Budgeted Contribution Margin
For the First buarter of the Coming Year
January
February March
Total
Sales revenue
Direct labor cost
Materials cost
Contribution margin](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b5a079f-a825-45e5-97f9-1d5aca8d2305%2Fe9d579a0-cf5e-4656-afd2-bf63311289e5%2Fh1ah0ro_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Direct Materials Cost Budget
For the First Quarter of the Coming Year
January
February March
Total
Units produced
Cost per unit
Total direct materials
d. Sales budget: Round unit selling price amounts to the nearest cent and use the same for subsequent requirements.
Greiner Company
Sales Budget (dollars)
For the First Quarter of the Coming Year
January
February March
Total
Unit sales
Unit selling price
Total sales revenue
2. 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 Company
Budgeted Contribution Margin
For the First buarter of the Coming Year
January
February March
Total
Sales revenue
Direct labor cost
Materials cost
Contribution margin
![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 wages, 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 6,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 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 April
Estimated unit sales
37,200
35,400 40,000 40,000
Sales price per unit
$80
$80
$75
$75
Direct labor hours per unit
2.80
2.80
2.50
2.50
Direct labor hourly rate
$19
$19
$20
$20
Direct materials cost per unit
$9
$9
$9
$9](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b5a079f-a825-45e5-97f9-1d5aca8d2305%2Fe9d579a0-cf5e-4656-afd2-bf63311289e5%2Fuibrxgk_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 wages, 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 6,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 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 April
Estimated unit sales
37,200
35,400 40,000 40,000
Sales price per unit
$80
$80
$75
$75
Direct labor hours per unit
2.80
2.80
2.50
2.50
Direct labor hourly rate
$19
$19
$20
$20
Direct materials cost per unit
$9
$9
$9
$9
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