Revenue expected for 2011 are: Selling price $392 per table Unit sold 52,000 coffee tables Each coffee table requires 9.00 b.f. of particleboard and 10.00 b.f. of red oak Costs expected for 2011 include: 2010 2011 Particle board (per b.f.) $3.90 $4.00 Red oak per b.f.) $5.80 $6.00 Laminating labor (per hour) $24.00 $25.00 Machine labor (per hour) $29.00 $30.00 Prepare the following budgets for 2011: a. Revenues Budget b. Production Budget (in units) c. Direct Materials Usage Budget
Kaizen Furniture has the following information in respect to coffee tables for 2011:
Production specifications:
Beginning Target ending Inventory Inventory
Direct Materials:
Particle board 20,000 b.f. 18,000 b.f.
Red oak 25,000 b.f. 22,000 b.f.
Finished goods
Coffee tables 5,000 units 3,000 units
Revenue expected for 2011 are:
Selling price $392 per table
Unit sold 52,000 coffee tables
Each coffee table requires 9.00 b.f. of particleboard and 10.00 b.f. of red oak
Costs expected for 2011 include:
2010 2011
Particle board (per b.f.) $3.90 $4.00
Red oak per b.f.) $5.80 $6.00
Laminating labor (per hour) $24.00 $25.00
Machine labor (per hour) $29.00 $30.00
Prepare the following budgets for 2011:
a. Revenues Budget
b. Production Budget (in units)
c. Direct Materials Usage Budget
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