Final_Exam_-_Review_Session_Managerial_Problems

Final_Exam_-_Review_Session_Managerial_Problems - purchases...

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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 pound 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  5.   Selling and administrative expenses are expected to be 15% of sal 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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Unformatted text preview: purchases to be $297,000 in quarter 1 and $439,500 in quarter 2. Hint: Prepare the following budgets: 1. Sales budget 2. Production budget 3. Direct materials budget for Gumm 4. Direct Labor Budget P18-1A Matt Reiss owns the Fredonia Barber Shop. He employs five barbers and pays each a base rate of $1,000 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base rate, each barber also receives a commission of $5.50 per haircut. Other costs are as follows. $200 per month $900 per month Barber supplies $0.30 per haircut $175 per month plus $0.20 per haircut $25 per month Matt currently charges $10 per haircut. Instructions (a) Determine the variable cost per haircut and the total monthly f (b) Compute the break-even point in units and dollars....
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Final_Exam_-_Review_Session_Managerial_Problems - purchases...

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