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The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,640 kayaks during 2022. Each kayak will require 56 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.20 per pound, and the finishing kits cost $210 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $17 per hour, and the type II are paid $14 per hour. Manufacturing overhead is budgeted at $414,840 for 2022, broken down as follows. Variable costs Indirect materials $46,400 Manufacturing supplies 64,960 Maintenance and utilities 102,080 213,440 Fixed costs Supervision 78,000 Insurance 13,200 Depreciation 110,200 201,400 Total $414,840 During the first quarter, ended March 31, 2022, 1,210 units were actually produced with the following costs. Polyethylene powder $82,912 Finishing kits 254,360 Type I labor 41,140 Type II labor 52,120 Indirect materials 12,100 Manufacturing supplies 16,968 Maintenance and utilities 29,200 Supervision 16,500 Insurance 3,300 Depreciation 27,550 Total $536,150 Prepare the flexible budget for manufacturing for the quarter ended March 31, 2022. Assume activity levels of 1,060,1,160, and 1.210 units. (List variable costs before fixed costs.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2022 Units to be Produced Variable Costs Polyethylene Powder 1,060 69 1.160 1,210 71232 $ 77952 $ Finishing Kits 222600 243600 Labor - Type I 36040 39440 Labor - Type II 44520 48720 Indirect Materials 10600 11600 Manufacturing Supplies 14840 16240 25 Maintenance and Utilities 23320 25520 2 Total Variable Costs Fixed Costs Supervision Insurance Depreciation 423152 463072 48 78000 78000 71 13200 13200 1: 110200 110200 110 Total Fixed Costs 201400 201400 20: Total Costs 624552 664472 68

The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,640 kayaks during 2022. Each kayak will require 56 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.20 per pound, and the finishing kits cost $210 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $17 per hour, and the type II are paid $14 per hour. Manufacturing overhead is budgeted at $414,840 for 2022, broken down as follows. Variable costs Indirect materials $46,400 Manufacturing supplies 64,960 Maintenance and utilities 102,080 213,440 Fixed costs Supervision 78,000 Insurance 13,200 Depreciation 110,200 201,400 Total $414,840 During the first quarter, ended March 31, 2022, 1,210 units were actually produced with the following costs. Polyethylene powder $82,912 Finishing kits 254,360 Type I labor 41,140 Type II labor 52,120 Indirect materials 12,100 Manufacturing supplies 16,968 Maintenance and utilities 29,200 Supervision 16,500 Insurance 3,300 Depreciation 27,550 Total $536,150 Prepare the flexible budget for manufacturing for the quarter ended March 31, 2022. Assume activity levels of 1,060,1,160, and 1.210 units. (List variable costs before fixed costs.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2022 Units to be Produced Variable Costs Polyethylene Powder 1,060 69 1.160 1,210 71232 $ 77952 $ Finishing Kits 222600 243600 Labor - Type I 36040 39440 Labor - Type II 44520 48720 Indirect Materials 10600 11600 Manufacturing Supplies 14840 16240 25 Maintenance and Utilities 23320 25520 2 Total Variable Costs Fixed Costs Supervision Insurance Depreciation 423152 463072 48 78000 78000 71 13200 13200 1: 110200 110200 110 Total Fixed Costs 201400 201400 20: Total Costs 624552 664472 68

FINANCIAL ACCOUNTING
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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The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,640 kayaks during 2022. Each kayak will require 56 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.20 per pound, and the finishing kits cost $210 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $17 per hour, and the type II are paid $14 per hour. Manufacturing overhead is budgeted at $414,840 for 2022, broken down as follows. Variable costs Indirect materials $46,400 Manufacturing supplies 64,960 Maintenance and utilities 102,080 213,440 Fixed costs Supervision 78,000 Insurance 13,200 Depreciation 110,200 201,400 Total $414,840 During the first quarter, ended March 31, 2022, 1,210 units were actually produced with the following costs. Polyethylene powder $82,912 Finishing kits 254,360 Type I labor 41,140 Type II labor 52,120 Indirect materials 12,100 Manufacturing supplies 16,968 Maintenance and utilities 29,200 Supervision 16,500 Insurance 3,300 Depreciation 27,550 Total $536,150
Transcribed Image Text:The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,640 kayaks during 2022. Each kayak will require 56 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.20 per pound, and the finishing kits cost $210 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $17 per hour, and the type II are paid $14 per hour. Manufacturing overhead is budgeted at $414,840 for 2022, broken down as follows. Variable costs Indirect materials $46,400 Manufacturing supplies 64,960 Maintenance and utilities 102,080 213,440 Fixed costs Supervision 78,000 Insurance 13,200 Depreciation 110,200 201,400 Total $414,840 During the first quarter, ended March 31, 2022, 1,210 units were actually produced with the following costs. Polyethylene powder $82,912 Finishing kits 254,360 Type I labor 41,140 Type II labor 52,120 Indirect materials 12,100 Manufacturing supplies 16,968 Maintenance and utilities 29,200 Supervision 16,500 Insurance 3,300 Depreciation 27,550 Total $536,150
Prepare the flexible budget for manufacturing for the quarter ended March 31, 2022. Assume activity levels of 1,060,1,160, and 1.210 units. (List variable costs before fixed costs.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2022 Units to be Produced Variable Costs Polyethylene Powder 1,060 69 1.160 1,210 71232 $ 77952 $ Finishing Kits 222600 243600 Labor - Type I 36040 39440 Labor - Type II 44520 48720 Indirect Materials 10600 11600 Manufacturing Supplies 14840 16240 25 Maintenance and Utilities 23320 25520 2 Total Variable Costs Fixed Costs Supervision Insurance Depreciation 423152 463072 48 78000 78000 71 13200 13200 1: 110200 110200 110 Total Fixed Costs 201400 201400 20: Total Costs 624552 664472 68
Transcribed Image Text:Prepare the flexible budget for manufacturing for the quarter ended March 31, 2022. Assume activity levels of 1,060,1,160, and 1.210 units. (List variable costs before fixed costs.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2022 Units to be Produced Variable Costs Polyethylene Powder 1,060 69 1.160 1,210 71232 $ 77952 $ Finishing Kits 222600 243600 Labor - Type I 36040 39440 Labor - Type II 44520 48720 Indirect Materials 10600 11600 Manufacturing Supplies 14840 16240 25 Maintenance and Utilities 23320 25520 2 Total Variable Costs Fixed Costs Supervision Insurance Depreciation 423152 463072 48 78000 78000 71 13200 13200 1: 110200 110200 110 Total Fixed Costs 201400 201400 20: Total Costs 624552 664472 68
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