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Slopes, Inc., manufactures and se s snowboards. Slopes manufactures a single model, the Pipex.

Slopes, Inc., manufactures and se s snowboards. Slopes manufactures a single model, the Pipex. In the summer of 2006, Slopes's management accountant gathered the following data to prepare budgets for 2007:

5 board feet (b.f.) per snowboard 6 yards per snowboard
5 hours per snowboard
Materials and labor requirements
Direct materials
Wood Fiberglass
Direct manufacturing labor

Slopes's CEO expects to sell 1,000 snowboards during 2007 at an estimated retail price of $450 per board. Further, he expects 2007 beginning inventory of 100 boards and would like to end 2007 with 200 snowboards in stock.
Direct materials inventories
Beginning Inventory 1/1/2007 Ending Inventory 12/31/2007
Wood 2,000 1,500
Fiberglass 1,000 2,000
Variable manufacturing overhead is $7 per direct manufacturing labor-hour. There are also $66,000 in fixed manufacturing overhead costs budgeted for 2007. Slopes combines both variable and fixed manufac¬turing overhead into a single rate based on direct manufacturing labor-hours. Variable marketing costs are allocated at the rate of $250 per sales visit. The marketing plan calls for 30 sales visits during 2007. Finally, there are $30,000 in fixed nonmanufacturing costs budgeted for 2007.
Other data includes:
2006 Unit Price 2007 Unit Price

Wood $28.00 per b.ft. $30.00 per b.ft.
Fiberglass $ 4.80 per yard $ 5.00 per yard

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