Becker Bikes manufactures tricycles. The company expects to sell 380 units in May and 510 units in June. Beginning and endingfinished goods for May are expected to be 110 and 75 units, respectively. June's ending finished goods are expected to be 85 units.The company's variable overhead is $4.00 per unit produced and its fixed overhead is $4,500 per month.Compute Becker's manufacturing overhead budget for May and June.Note: Do not round intermediate calculations. Round your final answers to 2 decimal places.Budgeted manufacturing overheadMayJune

May JuneBudgeted manufacturing overhead $5,880 $6,580 Explanation:Step 1:Computation of the…

Answered: Becker Bikes manufactures tricycles.…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 5EB: Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and...

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Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing itsoperating budget for the coming year. Selected data regarding the companys two products areas follows: Manufacturing overhead is applied to units using direct labor hours. Variable manufacturing overhead Ls projected to be 25,000, and fixed manufacturing overhead is expected to be15,000. The estimated cost to produce one unit of the laminated putter head is: a. 42. b. 46. c. 52. d. 62.
Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: At the beginning of March, Salisburys management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for March. c. Interpret the budget performance report.
Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs $3.00 per yard. The companys policy is to have enough material on hand to equal 15% of next months production needs and to maintain a finished goods inventory equal to 20% of the next months production needs. What is the budgeted cost of purchases for March?
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The standard cost card uses $15.50 as the standard hourly rate. A. Compute the direct labor rate and time variances for the month of June, and also calculate the total direct labor variance. B. If the standard rate per hour was $16.00, what would change?
Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The companys policy is to have enough material on hand to equal 10% of the next months production needs and to maintain a finished goods inventory equal to 25% of the next months production needs. What is the budgeted cost of purchases for March?
Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid $32 per hour for labor, for a total of $718,848. The standard hours per unit are 6.4, and the standard labor wage rate is $38.40 per hour. A. What are the actual hours worked? B. What are the standard hours for the units made? C. What is the direct labor rate variance for April? D. What Is the direct labor time variance for April? E. What is the total direct labor variance for April?
Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiners master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employers share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the companys union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 percent of the following month's projected sales in inventory. Information on the first four months of the coming year is as follows: Required: 1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year. Be sure to show supporting calculations. a. Production budget in units b. Direct labor budget in hours c. Direct materials cost budget d. Sales budget 2. Calculate the total budgeted contribution margin for Greiner Company by month and in total for the first quarter of the coming year. Be sure to show supporting calculations. (CMA adapted)
Using the following information, prepare a factory overhead cost budget for Jacob Company where the total factory overhead cost is $206,500 at normal capacity (100%). Include capacity at 60%, 80%, 100%, and 120%. Total variable cost is $15.25 per unit and total fixed costs are $54,000. The information is for the month ending October 31. (Hint: Determine units produced at normal capacity.) Jacob Company Factory Overhead Cost Budget For the Month Ending October 31 Amount Amount 60% 80% Line Item Description Percent of normal capacity Units produced Variable costs ($15.25 per unit) $ Fixed costs. Total factory overhead cost $ Amount 100% Amount 120% $ D
Becker Bikes manufactures tricycles. The company expects to sell 360 units in May and 490 units in June. Beginning and ending finished goods for May is expected to be 100 and 65 units, respectively. June's ending finished goods is expected to be 75 units. The company's variable overhead is $3.00 per unit produced and its fixed overhead is $3,500 per month. Compute Becker's manufacturing overhead budget for May and June. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Budgeted manufacturing overhead May June
Blue Devil Inc. sells only one single product in both Michigan and Indiana. The company is preparing its master budget for April 2021. Use the given estimates to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) Required: d. How much direct labor cost should be incurred if each unit produced requires 1.5 hours at an hourly rate of $16? e. How much manufacturing overhead should be incurred if fixed manufacturing overhead is $60,000 and variable manufacturing overhead is $2 per direct labor hour?
Using the following information, prepare a factory overhead cost budget for Starts Inc. where the total factory overhead cost is $115,000 at normal capacity (100%). Include capacity at 40%, 75%, 100%, and 115%. Total variable cost is $18.50 per unit and total fixed costs are $78,000. The information is for the month ending October 31. (Hint: Determine units produced at normal capacity.) If the company operates at 75%, (2) compute the Factory Overhead Variance (Controllable) and indicate whether it is favorable or unfavorable

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