Cours project - Fantastic Inc Historical Information Sales...

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Fantastic, Inc Historical Information Sales in Gallons Year Super Stupendous 2001 411,000 none 2002 412,000 none 2003 405,000 186,250 2004 430,000 223,500 2005 420,000 268,200 Projected Selling Price for 2006 per gallon Super Stupendous $10.30 $15.45 Inventory and material information Beginning Inventory Cans 56,550 cans 61,700 cans Pigment Super 63,300 lbs 70,000 Stp'dous 49,700 53,750 lbs Finished Good Inv Super 31,700 gal 35,000 gal Stp'dous 24,850 gal 27,000 gal 2005 Prices Cans $0.40 Super pigment $2.75 per pound Stupendous pigment $3.75 per pound Expected 2006 prices: Cans $0.02 increase over 2005 prices Super pigment $0.14 increase over 2005 prices Stupendous pigment $0.19 increase over 2005 prices Usage Standards Super 2 pounds per gallon Stupendous 2 pounds per gallon Direct Labor and machine hour information information 2005 labor rate - both departments $8.25 per hour Expected 2006 rate increase $0.25 Per hour rate increase over 2005 Production standards and information Super Stp'dous Machine hours/gallon 0.12 hours 0.12 hours Labor hours per machine hr. 1.25 hours 1.25 hours 2005 machines available 26 20 Annual capacity per machine 15,000 gal 15,000 gal Machine hours per machine 1,800 hours 1,800 hours Maximum annual hours per employee 2,000 hours 2,000 hours Employees per supervisor 8 8 Overhead information 2005 information Variable Fixed Indirect materials $0.20 per gal Indirect labor rate-annual $50,000 per supervisor Employee fringe benefits 20% of wages Health benefits per employee $1,500 per employee Utilities $0.40 per Mhr Maintenance $0.20 per Mhr $10,000 annually* Insurance $50,000 annually* Property taxes $10,000 annually* Supplies $5,000 annually* Depreciation - mfg $250,000 annually** * These items are allocated to dpts based upon production levels in gallons **The 2005 alloction ws $141,300 for Super and $108,700 to Stupendous It is expected that the following changes will occur in 2006: Variable Fixed Indirect materials no change Indirect labor rate-annual 2.50% increase per employee Employee fringe benefits no change Health benefits per employee $200 increase per employee Utilities no change Maintenance $0.05 inc.per Mhr $500 annual increase* Insurance $500 annual increase* Property taxes 8% annual increase* Supplies $200 annual increase* Depreciation - mfg 2005 equip no change Depreciation- new purchases Five year life** * These items are allocated to dpts based upon production levels in gallons **The 2005 alloction ws $141,300 for Super and $108,700 to Stupendour 2005 depreciation Super Stupendous $141,300 $108,700 Cash Increase Debt Purchases for each new piece of equipment $5,000 $25,000 Selling department information 2005 information Variable Fixed Commissions $0.35 per can Salaries $15,000 per representative Fringe benefits 20% commissions 20% salaries Health benefits $1,500 per representative Advertising $10 Meals&entertainment $50 per week per representative Depreciation $7,500 It is expected that the following changes will occur in 2006: Variable
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