10 - b. Direct Labor Budget Cutting Assembly Hours required...

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Sheet1 Page 1 E 7-2 a. Production Budget Finished Goods Beginning Inventory = 3000 units Units To Be Sold = 20,000 units To Be 18,000 units producted ( Production Budget) Avaliable Inventory = 21,000 units Ending Inventory = 1000 units b. Direct Material Budget Direct Materials A B Product and Region Gallons Pound Quantities Requried For Production 19,000 gal 19,000 lb Plus desired ending inventory, March 31 1,000 gal 1,000 lb Total 20,000 gal 20,000 lb Less estimated beginning inv, March1 500 gal 1,000 lb Total quantity to be purchased 19,500 gal 19,000 lb Unit Price $2.00 $1.00 Total direct materials purchases $39,000.00 $19,000.00 E 7-3 a. Production Budget Finished Goods Beginning Inventory = 5000 units Units To Be Sold = 45,000 units To Be 44,000 units producted ( Production Budget) Avaliable Inventory = 49,000 units
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Sheet1 Page 2 Ending Inventory = 4000 units
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Unformatted text preview: b. Direct Labor Budget Cutting Assembly Hours required for production: $11,000 $22,000 Hourly rate $14.00 $12.00 Total direct labor cost $154,000 $264,000 Cutting 44,000 units x 0.25 hours per unit = $11,000 Assembly 44,000 units x 0.50 hours per unit = $22,000 E 7-8 Budget Actual Variance Item (5,000 units) (5000 units) Sales $125,000 $120,000 $5000 U Direct Materials $25,000 $26,000 $1000 U Direct Labor $15,000 $14,000 $1000 F Variable Factory Overhead $20,000 $25,500 $5,500 U Variable selling and administrative expense $5,000 $5,500 $500U Contribution Margin $60,000 $49,000 $11,000 U Fixed factory overhead $25,000 $26,750 $1,750 U Fixed selling and administrative expense $20,000 $19,800 $200 F Operating income $15,000 $2,450 $12,550 U...
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This note was uploaded on 11/28/2010 for the course ACCT 101 taught by Professor O'connel during the Spring '09 term at New York Institute of Technology-Westbury.

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10 - b. Direct Labor Budget Cutting Assembly Hours required...

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