Using the data below, estimate the direct labor costs per unit for 2021. Consider carefully the labor effort required, on average, to get one unit of sale. Selling price per unit is $70. Ending inventory each year is zero. Production capacity is #20,000 per year. Inflation is zero. It is a several week warranty. REVENUE Direct Materials Factory & Equipment Lease Utilities Selling and Administration Maintenance Legal Fees Direct Labour Patent Amortization Utilities Selling and Administration Maintenance Legal Fees Direct Labour Patent Amortization Profit Warranty replacements (#) O5.00 to 5.50 O 5.51 to 5.99 O 5.90 to 6.10 O 6.11 to 6.20 O 6.21 to 6.50 O No answer text provided. Year 2018 Year 2019 $896,000 234,000 150,000 59,000 242,400 65,000 O 78,000 59,000 242,400 65,000 0 78,000 0 67,600 200 $1,085,000 288,000 150,000 68,000 264,000 80,000 23,000 96,000 30,000 68,000 264,000 80,000 23,000 96,000 30,000 86,000 500 Year 2020 $1,204,000 324,000 150,000 74,000 277,600 123,000 11,000 108,000 30,000 74,000 277,600 123,000 11,000 108,000 30,000 106,400 800

Using the data below, estimate the direct labor costs per unit for 2021. Consider carefully the labor effort required, on average, to get one unit of sale. Selling price per unit is $70. Ending inventory each year is zero. Production capacity is #20,000 per year. Inflation is zero. It is a several week warranty. REVENUE Direct Materials Factory & Equipment Lease Utilities Selling and Administration Maintenance Legal Fees Direct Labour Patent Amortization Utilities Selling and Administration Maintenance Legal Fees Direct Labour Patent Amortization Profit Warranty replacements (#) O5.00 to 5.50 O 5.51 to 5.99 O 5.90 to 6.10 O 6.11 to 6.20 O 6.21 to 6.50 O No answer text provided. Year 2018 Year 2019 $896,000 234,000 150,000 59,000 242,400 65,000 O 78,000 59,000 242,400 65,000 0 78,000 0 67,600 200 $1,085,000 288,000 150,000 68,000 264,000 80,000 23,000 96,000 30,000 68,000 264,000 80,000 23,000 96,000 30,000 86,000 500 Year 2020 $1,204,000 324,000 150,000 74,000 277,600 123,000 11,000 108,000 30,000 74,000 277,600 123,000 11,000 108,000 30,000 106,400 800

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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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

Using the data below, estimate the direct labor costs per unit for 2021.
Consider carefully the labor effort required, on average, to get one unit of sale.
Selling price per unit is $70.
Ending inventory each year is zero.
Production capacity is #20,000 per year.
Inflation is zero.
It is a several week warranty.
REVENUE
Direct Materials
Factory & Equipment Lease
Utilities
Selling and Administration
Maintenance
Legal Fees
Direct Labour
Patent Amortization
Utilities
Selling and Administration
Maintenance
Legal Fees
Direct Labour
Patent Amortization
Profit
Warranty replacements (#)
O5.00 to 5.50
O 5.51 to 5.99
O 5.90 to 6.10
O 6.11 to 6.20
O 6.21 to 6.50
O No answer text provided.
Year 2018 Year 2019
$896,000 $1,085,000
234,000
150,000
59,000
242,400
65,000
O
78,000
O
59,000
242,400
65,000
0
78,000
0
67,600
200
288,000
150,000
68,000
264,000
80,000
23,000
96,000
30,000
68,000
264,000
80,000
23,000
96,000
30,000
86,000
500
Year 2020
$1,204,000
324,000
150,000
74,000
277,600
123,000
11,000
108,000
30,000
74,000
277,600
123,000
11,000
108,000
30,000
106,400
800

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