employee medical insurance of $5 per hour, and employer contributions to Social Security equal to 6.00 percent of direct-labor wages. The cost of employee benefits paid by the company on its employees is treated as a direct-labor cost.Shibby Shades Incorporated has a labor contract that calls for a wage increase to $15.00 per hour on April 1, 20x1.Management expects to have 23,200 frames on hand at December 31, 20x0, and has a policy of carrying an end-of-monthinventory of 100 percent of the following month's sales plus 40 percent of the second following month's sales.These and other data compiled by Demarest are summarized in the following table.Direct-labor hours per unitWage per direct-labor hourJanuary2.0$ 13.00May1.75$ 15.0015,000Estimated unit salesSales price per unit16,000February2.0$ 13.0018,000March1.75$ 13.0014,000April1.75$ 15.0015,000Production overhead:$ 62.00$ 59.50$ 59.50$ 59.50$ 59.50Shipping and handling (per unit sold)$ 4.00$ 4.00unit produced)Purchasing, material handling, and inspection (per$4.00$ 4.00$ 4.00$ 5.00$ 5.00$ 5.00$ 5.00$ 5.00Other production overhead (per direct-labor hour)$ 9.00$ 9.00$ 9.00$ 9.00$ 9.00PR 9-31 (Algo) Part 3: Prepare a production overhead budget...3. Prepare a production overhead budget for each month and for the first quarter.O Answer is complete but not entirely correct.SHIBBY SHADES INCORPORATEDJanuaryProduction Overhead BudgetFor the First Quarter of 20x1MonthFebruaryQuarterMarchShipping and handling$Purchasing, material handling, and inspectionOther overhead64,000 $ 72,000 $80,00056,000 $192,00090,00070,000 ×240,000288,000x324,000220,500 x832,500 xTotal production overhead$432,000 $ 486,000$346,500$ 1,264,500

Name: employee medical insurance of $5 per hour, and employer contributions
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Description: employee medical insurance of $5 per hour, and employer contributions to Social Security equal to 6.00 percent of direct-labor wages. The cost of employee benefits paid by the company on its employees is treated as a direct-labor cost.Shibby Shades

The budget is prepared to estimate the requirements for the period. The production budget is…

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Accounting

These and other data compiled by Demarest are summarized in the following table. Direct-labor hours per unit Wage per direct-labor hour Estimated unit sales Sales price per unit Production overhead: Shipping and handling (per unit sold) Purchasing, material handling, and inspection (per unit produced) Other production overhead (per direct-labor hour) January 2.0 $ 13.00 February 2.0 $ 13.00 16,000 18,000 $ 62.00 $ 59.50 March 1.75 $ 13.00 14,000 $ 59.50 April 1.75 $ 15.00 15,000 $ 59.50 May 1.75 $ 15.00 15,000 $ 59.50 $ 4.00 $ 4.00 $ 4.00 $4.00 $ 4.00 $ 5.00 $5.00 $5.00 $ 5.00 $ 5.00 $ 9.00 $ 9.00 $ 9.00 $ 9.00 $ 9.00 PR 9-31 (Algo) Part 3: Prepare a production overhead budget... 3. Prepare a production overhead budget for each month and for the first quarter.

These and other data compiled by Demarest are summarized in the following table. Direct-labor hours per unit Wage per direct-labor hour Estimated unit sales Sales price per unit Production overhead: Shipping and handling (per unit sold) Purchasing, material handling, and inspection (per unit produced) Other production overhead (per direct-labor hour) January 2.0 $ 13.00 February 2.0 $ 13.00 16,000 18,000 $ 62.00 $ 59.50 March 1.75 $ 13.00 14,000 $ 59.50 April 1.75 $ 15.00 15,000 $ 59.50 May 1.75 $ 15.00 15,000 $ 59.50 $ 4.00 $ 4.00 $ 4.00 $4.00 $ 4.00 $ 5.00 $5.00 $5.00 $ 5.00 $ 5.00 $ 9.00 $ 9.00 $ 9.00 $ 9.00 $ 9.00 PR 9-31 (Algo) Part 3: Prepare a production overhead budget... 3. Prepare a production overhead budget for each month and for the first quarter.

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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