Final_Exam_-_Review_Session_Managerial_Problems

Final_Exam_-_Review_Session_Managerial_Problems -...

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P20-1A (instructions modified for ACCT 2000)         Danner Farm Supply Company manufactures and sells a pesticide called Snare. The following data  are available for preparing budgets for Snare for the first 2 quarters of 2011.  1.   Sales: Quarter 1, 28,000 bags; quarter 2, 42,000 bags. Selling pric 2.   Direct materials: Each bag of Snare requires 4 pounds of Gumm a and 6 pounds of Tarr at $1.50 per pound. 3.   Desired inventory levels:  Type of Inventory January 1 Snare (bags)  8,000 Gumm (pounds)  9,000 Tarr (pounds) 14,000 4.   Direct labor: Direct labor time is 15 minutes per bag at an hourly r 5.   Selling and administrative expenses are expected to be 15% of sale quarter. 6.   Income taxes are expected to be 30% of income from operations. Your assistant has prepared two budgets: (1) The manufacturing overhead budget shows expected  costs to be 150% of direct labor cost. (2) The direct materials budget for Tarr shows the cost of Tarr 
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This note was uploaded on 01/16/2012 for the course FIN 3716 taught by Professor Fang during the Fall '10 term at LSU.

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Final_Exam_-_Review_Session_Managerial_Problems -...

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