FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables.The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements.Type of BoxDirect material required per 100 boxes:Paperboard ($0.30 per pound)Corrugating medium ($0.15 per pound).Direct labor required per 100 boxes ($18.00 per hour).Indirect materialIndirect laborUtilitiesProperty taxesInsuranceDepreciation.TotalC$12,15095,85031,50021,00016,000.33,500$210,000Total40 pounds30 pounds0.25 hourThe following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based ona production volume of 400,000 units for each type of box. Production overhead is applied on the basis of direct-laborhours.The following selling and administrative expenses are anticipated for the next year.Salaries and fringe benefits of sales personnel.Advertising$115,50023,500Management salaries and fringe benefits.137,000clerical wages and fringe benefits40,000Miscellaneous administrative expenses6,200$322,200P80 pounds40 pounds0.50 hour The sales forecast for the next year is as follows:Sales Volume405,000 boxes405,000 boxesBox type CBox type PThe following inventory information is available for the next year. The unit production costs for each product are expectedto be the same this year and next year.Finished goods:Box type cBox type PRaw material:Sales Price$125.00 per hundred boxes185.00 per hundred boxesSales (in units)Sales price per unitSales revenueExpected InventoryJanuary 112,000 boxes22,000 boxes$$ 50,625,00016,000 pounds6,000 poundsPaperboardCorrugating medium6,000 pounds11,000 poundsPrepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent.Required:1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.)Desired Ending InventoryDecember 31Answer is complete but not entirely correct.Box C405,000125.00 $Box P405,000185.00$ 74,925,000Total7,000 boxes17,000 boxes125,550,000

Budgeting enables you to make better financial decisions. By analyzing your income and expenses, you…

The sales forecast for the next year is as follows: Sales Volume 405,000 boxes 405,000 boxes Box type C Box type P The following inventory information is available for the next year. The unit production costs for each product are expected to be the same this year and next year. Finished goods: Box type c Box type P Raw material: Paperboard Corrugating medium Sales Price $125.00 per hundred boxes 185.00 per hundred boxes Sales (in units) Sales price per unit Sales revenue Expected Inventory January 1 12,000 boxes 22,000 boxes $ $ 50,625,000 16,000 pounds 6,000 pounds 6,000 pounds 11,000 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent. Desired Ending Inventory December 31 Required: 1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.) Answer is complete but not entirely correct. Box P Box C 405,000 405,000 125.00 $ 185.00 $ 74,925,000 Total 7,000 boxes 17,000 boxes 125,550,000

The sales forecast for the next year is as follows: Sales Volume 405,000 boxes 405,000 boxes Box type C Box type P The following inventory information is available for the next year. The unit production costs for each product are expected to be the same this year and next year. Finished goods: Box type c Box type P Raw material: Paperboard Corrugating medium Sales Price $125.00 per hundred boxes 185.00 per hundred boxes Sales (in units) Sales price per unit Sales revenue Expected Inventory January 1 12,000 boxes 22,000 boxes $ $ 50,625,000 16,000 pounds 6,000 pounds 6,000 pounds 11,000 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent. Desired Ending Inventory December 31 Required: 1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.) Answer is complete but not entirely correct. Box P Box C 405,000 405,000 125.00 $ 185.00 $ 74,925,000 Total 7,000 boxes 17,000 boxes 125,550,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 19E: Process activity analysis The Brite Beverage Company bottles soft drinks into aluminum cans. The...

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FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (Type C) and the perishable food box (Type P) have the following material and labor requirements. Direct material required per 100 boxes: Type C Type P Paperboard ( $0.20 per pound) 30 pounds 70 pounds Corrugating medium ( $0.10 per pound) 20 pounds 30 pounds Direct labor required per 100 boxes ($12.00 per hour) 0.25 hour 0.50 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 495,000 units for each type of box. Production overhead is applied on the basis of direct labor hours. Indirect material $10,500 Indirect labor $50,000 Utilities $25,000 Property taxes $18,000 Insurance $16,000 Depreciation $29,000 Total $148,500 The following selling and administrative expenses are anticipated for the next year. Salaries and…
FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (Type C) and the perishable food box (Type P) have the following material and labor requirements. Direct material required per 100 boxes: Type C Type P Paperboard ( $0.20 per pound) 30 pounds 70 pounds Corrugating medium ( $0.10 per pound) 20 pounds 30 pounds Direct labor required per 100 boxes ($12.00 per hour) 0.25 hour 0.50 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 495,000 units for each type of box. Production overhead is applied on the basis of direct labor hours. Indirect material $10,500 Indirect labor $50,000 Utilities $25,000 Property taxes $18,000 Insurance $16,000 Depreciation $29,000 Total $148,500 The following selling and administrative expenses are anticipated for the next year. Salaries and…
FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (Type C) and the perishable food box (Type P) have the following material and labor requirements. Direct material required per 100 boxes: Type C Type P Paperboard ( $0.20 per pound) 30 pounds 70 pounds Corrugating medium ( $0.10 per pound) 20 pounds 30 pounds Direct labor required per 100 boxes ($12.00 per hour) 0.25 hour 0.50 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 495,000 units for each type of box. Production overhead is applied on the basis of direct labor hours. Indirect material $10,500 Indirect labor $50,000 Utilities $25,000 Property taxes $18,000 Insurance $16,000 Depreciation $29,000 Total $148,500 The following selling and administrative expenses are anticipated for the next year. Salaries and…
[The following information applies to the questions displayed below.] FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. Type of Box C P Direct material required per 100 boxes: Paperboard ($0.36 per pound) 40 pounds 80 pounds Corrugating medium ($0.18 per pound) 30 pounds 40 pounds Direct labor required per 100 boxes ($18.00 per hour) 0.30 hour 0.60 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 485,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. Indirect material $ 14,700 Indirect labor 76,200 Utilities 51,000 Property taxes 34,000 Insurance…
Required information [The following information applies to the questions displayed below.] FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. Direct material required per 100 boxes: Paperboard ($0.32 per pound) Corrugating medium ($0.16 per pound) Direct labor required per 100 boxes ($16.00 per hour) Type of Box 50 pounds 90 pounds 40 0.35 pounds hour 50 pounds 0.70 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 440,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total $ 13,350 91,650 37,500 25,000 18,000 45,500 $ 231,000 The following selling and administrative expenses are…
Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity-based costing to determine the cost of the shipping and handling activity. The shipping and handling activity has an activity rate of $13 per pound. A box of glasses weighs 2 pounds, a box of fine china weighs 4 pounds, and a box of everyday dinnerware weighs 6 pounds. a Determine the shipping and handling activity cost to be allocated to each unit of product. Product Amount Glasses $fill in the blank 1 Fine China $fill in the blank 2 Everyday dinnerware $fill in the blank 3 b Determine the total shipping and receiving costs to be allocated to the fine china if 1,900 boxes are shipped.fill in the blank 1 of 1$
Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity-based costing to determine the cost of the shipping and handling activity. The shipping and handling activity has an activity rate of $12 per pound. A box of glasses weighs 2 pounds, a box of fine china weighs 4 pounds, and a box of everyday dinnerware weighs 6 pounds. a Determine the shipping and handling activity cost to be allocated to each unit of product. Glasses $fill in the blank 1 Fine China $fill in the blank 2 Everyday dinnerware $fill in the blank 3 b Determine the total shipping and receiving costs to be allocated to the fine china if 2,200 boxes are shipped.$fill in the blank 4
Process activity analysis The Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activities: 1. Mixing: water, sugar, and beverage concentrate are mixed. 2. Filling: mixed beverage is filled into 12-oz. cans. 3. Packaging: properly filled cans are boxed into cardboard fridge packs. The activity costs associated with these activities for the period are as follows: The activity costs do not include materials costs, which are ignored for this analysis. Each can is expected to contain 12 ounces of beverage. Thus, after being filled, each can is automatically weighed. If a can is too light, it is rejected, or kicked, from the filling line prior to being packaged. The primary cause of kicks is heat expansion. With heat expansion, the beverage overflows during filling, resulting in underweight cans. This process begins by mixing and filling 6,300,000 cans during the period, of which only 6,000,000 cans are actually packaged. Three hundred thousand cans are rejected due to underweight kicks. A process improvement team has determined that cooling the cans prior to filling them will reduce the amount of overflows due to expansion. After this improvement, the number of kicks is expected to decline from 300,000 cans to 63,000 cans, thus increasing the number of filled cans to 6,237,000 [6,000,000 + (300,000 63,000)]. A. Determine the total activity cost per packaged can under present operations. B. Determine the amount of increased packaging activity costs from the expected improvements. C. Determine the expected total activity cost per packaged can after improvements. Round to three decimal places.
Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows: The shaper is available for 120 hours, and the grinder for 110 hours. No more than 200 units of component 3 can be sold, but up to 1,000 units of each of the other components can be sold. In fact, the company already has orders for 600 units of component 1 that must be satisfied. The profit contributions for components 1, 2, and 3 are 8, 6, and 9, respectively. a. Formulate and solve for the recommended production quantities. b. What are the objective coefficient ranges for the three components? Interpret these ranges for company management. c. What are the right-hand-side ranges? Interpret these ranges for company management. d. If more time could be made available on the grinder, how much would it be worth? e. If more units of component 3 can be sold by reducing the sales price by 4, should the company reduce the price?
The Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activities: Mixing: water, sugar, and beverage concentrate are mixed. Filling: mixed beverage is filled into 12-oz. cans. Packaging: properly filled cans are boxed into cardboard “fridge packs.” The activity costs associated with these activities for the period are as follows: Activity Costs Mixing $218,000 Filling 186,000 Packaging 99,000 Total 503,000 The activity costs do not include materials costs, which are ignored for this analysis. Each can is expected to contain 12 ounces of beverage. Thus, after being filled, each can is automatically weighed. If a can is too light, it is rejected, or “kicked,” from the filling line prior to being packaged. The primary cause of kicks is heat expansion. With heat expansion, the beverage overflows during filling, resulting in underweight cans. This process begins by mixing and filling…
Your company produces sandwich cookie snack packs. There are three main processes used to make the cookies. The first process preps and mixes the ingredients into the cookie and the filling. The second process shapes, forms and bakes the cookies. The third process packages the cookies. The cookies are sold in cases of 30 cookie packs (1 case is a unit) Information on the direct materials is listed in table 1. Consider this information the standard. Direct labor information given in Table 2. Consider this information the standard. Annual overhead information is given in Table 3. Overhead is allocated based direct labor hours. Estimated annual direct labor hours are 221,800. Calculate a predetermined OH rate (round to two decimal places if needed). Use this rate when you need to apply OH. Table 4 gives you the information for the last six months on the manufacturing overhead cost and machine hours. Using the high/low method of cost estimation and this information, determine…
Berghof Foods manufactures various gourmet ethnic food products. Production of its specialty hummus requires a half pound of material per container, which costs $12 per pound and requires 45 minutes (i.e., 0:75 hour) of direct labor. Direct labor costs $20 per hour; the variable overhead rate is $10 per direct labor hour; and the fixed overhead rate is $6 per direct labor hour. What is the standard cost for each container of specialty hummus produced? Select one: O O O O O a. $21.00 per container b. $28.50 per container c. $33.00 per container d. $48.00 per container e. None of the above