Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following production volumes:Daytripper: 2,200 backpacks in July, 2,420 backpacks in AugustExcursion: 1,320 backpacks in July, 990 backpacks in AugustEach Daytripper backpack requires 1.0 hour of direct labor and each Excursion backpack requires 2.5 hours of direct labor.If the total budgeted labor for August is 5,500 hours, how much indirect labor did Teton budget?Select one:Oa. None of these options are correct.Ob. 1,705 hours0c. 0 hours0d. 2,090 hoursOe. 605 hours

Approach to solving the question: First, compute the total number of direct labor hours required for…

Answered: Teton Trails manufactures backpacks for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sunrise Poles manufactures hiking poles and is planning on producing 3,646 units in March and 4,395 in April. Each pole requires a half pound of material, which costs $1.17 per pound. The company’s policy is to have enough material on hand to equal 7% of the next month’s production needs and to maintain a finished goods inventory equal to 17% of the next month’s production needs. What is the budgeted cost of purchases for March? Round to the nearest penny, two decimal places.
Crescent Company produces stuffed toy animals; one of these is “Arabeau the Cow.” Each Arabeau takes 0.20 yard of fabric (white with irregular black splotches) and eight ounces ofpolyfiberfill. Fabric costs $3.50 per yard and polyfiberfill is $0.05 per ounce. Crescent has budgeted production of Arabeaus for the next four months as follows: UnitsOctober 42,000November 90,000December 50,000January 40,000 Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy20 percent of the following month’s production needs and sufficient polyfiberfill be in inventory tosatisfy 40 percent of the following month’s production needs. Inventory of fabric and polyfiberfillat the beginning of October equals exactly the amount needed to satisfy the inventory policy.Each Arabeau produced requires (on average) 0.10 direct labor hour. The average cost ofdirect labor is $15 per hour.Required:1. Prepare a direct materials…
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Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 pounds of oysters in August. The company's flexible budget for August appears below: Actual pounds (q) Revenue ($4.15q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3,400) Wages and salaries ($2,400 + $0.40g) Shipping ($0.55q) Utilities ($1,240) Quilcene Oysteria Flexible Budget For the Month Ended August 31 Other ($470 + $0.01g) Total expenses Net operating income The actual results for August were as follows: Actual pounds Revenue Expenses: Quilcene Oysteria Income Statement For the Month Ended August 31 Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income 7,300 $ 30,295 2,555 3,400 5,320 4,015 1,240 543 17,073 $ 13,222 7,300 $ 27,000 2,725 3,260 5,730 3,745 1,050 1,163 17,673 $ 9,327
Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following production volumes: Daytripper: 2,400 backpacks in July, 2,640 backpacks in August Excursion: 1,440 backpacks in July, 1,080 backpacks in August Each Daytripper backpack requires 1.0 hour of direct labor and each Excursion backpack requires 2.5 hours of direct labor. If the total budgeted labor for August is 6,000 hours, how much indirect labor did Teton budget? Select one: 00 a. 0 hours b. 660 hours c. 1,860 hours d. None of these options are correct. e. 2,280 hours
Chadwick Shoe Co. produces and sells an e xcellent-quality walking shoe. After production, the shoes are distributed to 20 warehouses around the country. Each warehouse services approximately 100 stores in its region. Chadwick uses an EOQ model to determine the number of pairs of shoes to order for each warehouse from the factory. Annual demand for Warehouse OR2 is approximately 120,000 pairs of shoes. The ordering cost is $250 per order. The annual carrying cost of a pair of shoes is $2.40 per pair. Q. Assume each month consists of approximately 4 weeks. If it takes 1 week to receive an order, at what point should warehouse OR2 reorder shoes?
Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management reports that 5,600 snowboards and 6,600 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 156,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 4,100 snowboards and 4,600 pounds of carbon fiber in inventory. Carbon fiber costs $21 per pound. Each snowboard requires 0.5 hour of direct labor at $26 per hour. Variable overhead is budgeted at the rate of $14 per direct labor hour. The company budgets fixed overhead of $1,788,000 for the quarter.
Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $3 per pound and 0.4 direct labor hour at a rate of $16 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $4,000 per month. The company's policy is to maintain direct materials inventory equal to 40% of the next month's direct materials requirement. At the end of February the company had 9,600 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget Units to produce (1) Prepare direct materials budgets for March and April. (2) Prepare direct labor budgets for March and April. (3) Prepare factory overhead budgets for March and April. Complete this question by entering your answers in the tabs below. Required 1 March April May 3,000 4,300 4,500 Units to produce Required 2 Required 3 Prepare direct materials budgets for March and April. GARDEN YETI Direct Materials…
Prepare a production budget for the first four months of the year. Cloud Shoes manufactures recovery sandals and is planning on producing 12,000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs $3.00 per yard. The company’s policy is to have enough material on hand to equal 15% of next month’s production needs and to maintain a finished goods inventory equal to 20% of the next month’s production needs. What is the budgeted cost of purchases for March?
Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: Direct materials $1.65 Direct labor 0.60 Variable overhead 0.80 Fixed overhead 1.90 Total unit cost $4.95 For the coming year, Play-Disc expects to make 330,000 plastic discs, and to sell 311,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of $4.95. (There are no beginning or ending inventories of work in process.) Required: Question Content Area 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. If required, round your answers to the nearest cent. Play-DiscEnding Finished Goods Inventory BudgetFor the Coming Year Unit costs: $- Select - - Select - Overhead: - Select - - Select - Total cost per unit $fill in the blank 04d2fcfb606b005_9 Total ending inventory cost $fill in the blank 04d2fcfb606b005_10 Question Content Area 2. What…
Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $3 per pound and 0.5 direct labor hour at a rate of $18 per hour. Variable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $4,000 per month. The company's policy is to maintain direct materials inventory equal to 20% of the next month's direct materials requirement. At the end of February the company had 5,280 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget Units to produce March 3,300 April 4,600 (1) Prepare direct materials budgets for March and April. (2) Prepare direct labor budgets for March and April. (3) Prepare factory overhead budgets for March and April. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Direct labor hours needed Variable overhead rate per direct labor hour Budgeted variable overhead Budgeted fixed…

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