Reeves Company is preparing its master budget for July. Use the given estimates to determine the amounts

Question:

Reeves Company is preparing its master budget for July. Use the given estimates to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.)

a. What should total sales revenue be if territories A and B estimate sales of 8,000 and 20,000 units, respectively, and the unit selling price is \($50\) ?

b. If the beginning finished goods inventory is an estimated 1,500 units and the desired ending inventory is 2,500 units, how many units should be produced?

c. What dollar amount of material should be purchased at \($3\) per pound if each unit of product requires 2 pounds and beginning and ending materials inventories should be 4,000 and 3,000 pounds, respectively?

d. How much direct labor cost should be incurred if each unit produced requires 1.5 hours at an hourly rate of \($14\) ?

e. How much manufacturing overhead should be incurred if fixed manufacturing overhead is \($60,000\) and variable manufacturing overhead is \($1.50\) per direct labor hour?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial Accounting For Undergraduates

ISBN: 9781618531124

1st Edition

Authors: Christensen, Theodore E. Hobson, L. Scott Wallace, James S.

Question Posted: