Acme Sporting Goods Division

Budgeted Costs and Activities

For the Year Ended December 31, 2015

Direct materialsBasketballs

$168,100

Direct materialsHockey Sticks

303,280

Direct materialsBaseball Gloves

505,280

TOTAL

$976,660

Direct manufacturing laborBasketballs

$111,800

Direct manufacturing laborHockey Sticks

100,820

Direct manufacturing laborBaseball Gloves

150,820

TOTAL

$363,440

Other Indirect Fixed Costs

Setup$ 257,500

Equipment and maintenance costs215,200

Factory rent310,000

Total$ 782,700

Additional Budget Information

Product quantity

Basketballs58,000

Hockey Sticks 85,000

Baseball Gloves 100,000

Number of batches (cost driver)

Basketballs450

Hockey Sticks300

Baseball Gloves600

Machine hours (cost driver)

Basketballs 13,500

Hockey Sticks 10,500

Baseball Gloves15,000

Square footage of production space used (cost driver)

Basketballs3,200

Hockey Sticks5,000

Baseball Gloves7,800

Factors to consider:

Number of batches is the cost driver for setup costs.

Number of machine hours is the cost driver for equipment and maintenance costs.

Factory rent is paid per square foot.

Total available factory square footage is 20,000 and Acme's Sporting Goods Division is currently using only 80% of this capacity.

Acme records the cost of unused capacity as a separate line item and not as a product cost.

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Answer the following questions for Evan. Be sure to show your work as well as your answers in the boxes below (the boxes will expand as your enter your work). Where necessary, round your answers to three places after the decimal point.

1.Calculate the budgeted setup cost per unit:

Budgeted setup cost per unit (Basketballs):

(Total fixed costs + Total variable costs) Total units produced

https://investinganswers.com/dictionary/fixed-costs

Budgeted setup cost per unit (Hockey Sticks):

Budgeted setup cost per unit (Baseball Gloves):

https://www.accountingtools.com/articles/how-to-calculate-cost-per-unit.html

2.Calculate the budgeted equipment and maintenance cost per unit:

Budgeted equipment and maintenance cost per unit (Basketballs):

Budgeted equipment and maintenance cost per unit (Hockey Sticks):

Budgeted equipment and maintenance cost per unit (Baseball Gloves):

3.Calculate the budgeted production space cost per unit:

Budgeted production space cost per unit (Basketballs):

Budgeted production space cost per unit (Hockey Sticks):

Budgeted production space cost per unit (Baseball Gloves):

4.What is the budgeted cost of unused square footage capacity?

Acme Sporting Goods Division

Budgeted Costs and Activities

For the Year Ended December 31, 2015

Direct materialsBasketballs

$168,100

Direct materialsHockey Sticks

303,280

Direct materialsBaseball Gloves

505,280

TOTAL

$976,660

Direct manufacturing laborBasketballs

$111,800

Direct manufacturing laborHockey Sticks

100,820

Direct manufacturing laborBaseball Gloves

150,820

TOTAL

$363,440

Other Indirect Fixed Costs

Setup$ 257,500

Equipment and maintenance costs215,200

Factory rent310,000

Total$ 782,700

Additional Budget Information

Product quantity

Basketballs58,000

Hockey Sticks 85,000

Baseball Gloves 100,000

Number of batches (cost driver)

Basketballs450

Hockey Sticks300

Baseball Gloves600

Machine hours (cost driver)

Basketballs 13,500

Hockey Sticks 10,500

Baseball Gloves15,000

Square footage of production space used (cost driver)

Basketballs3,200

Hockey Sticks5,000

Baseball Gloves7,800

Factors to consider:

Number of batches is the cost driver for setup costs.

Number of machine hours is the cost driver for equipment and maintenance costs.

Factory rent is paid per square foot.

Total available factory square footage is 20,000 and Acme's Sporting Goods Division is currently using only 80% of this capacity.

Acme records the cost of unused capacity as a separate line item and not as a product cost.

-------------------------------------------------------------------------------------------------------------------------------

Answer the following questions for Evan. Be sure to show your work as well as your answers in the boxes below (the boxes will expand as your enter your work). Where necessary, round your answers to three places after the decimal point.

1.Calculate the budgeted setup cost per unit:

Budgeted setup cost per unit (Basketballs):

(Total fixed costs + Total variable costs) Total units produced

https://investinganswers.com/dictionary/fixed-costs

Budgeted setup cost per unit (Hockey Sticks):

Budgeted setup cost per unit (Baseball Gloves):

https://www.accountingtools.com/articles/how-to-calculate-cost-per-unit.html

2.Calculate the budgeted equipment and maintenance cost per unit:

Budgeted equipment and maintenance cost per unit (Basketballs):

Budgeted equipment and maintenance cost per unit (Hockey Sticks):

Budgeted equipment and maintenance cost per unit (Baseball Gloves):

3.Calculate the budgeted production space cost per unit:

Budgeted production space cost per unit (Basketballs):

Budgeted production space cost per unit (Hockey Sticks):

Budgeted production space cost per unit (Baseball Gloves):

4.What is the budgeted cost of unused square footage capacity?

Managerial Accounting question

I am looking for assistance determining how to approach the equations for the attached worksheet.