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Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed
Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed below. Number of Direct Labor Hours Machine Hours Product Units per Unit per Unit Rings 1,000 4 6 Dings 2,000 3 9 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $90,000. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $105,000. Aleutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours. The total factory overhead allocated per unit of Rings is ) Oa. $64.50 Ob. $65.25 Oc. $44.10 Od. $23.25 Product X Expected units to be sold 640,000 Desired ending inventory, December 31 85,000 Total units available 725,000 Estimated beginning inventory, January 1 (90,000) Total units to be produced 635,000 In Purple's production operations, Materials A, B, and are required to make Product X. The quantities of direct materials expected to be used for each unit of product are as follows: Product x Material A 0.50 lb. per unit Material B 1.00 lb. per unit Material C 1.20 lbs. per unit The prices of direct materials are as follows Material A $0.60 per pound A $ Material B $1.70 per pound Material C $1.00 per pound Prepare a direct materials purchases budget for Product X, assuming that there are no beginning or ending inventories for direct materials (all units purchased are used in production). Round unit price to two decimal places and the remaining answers to the nearest whole dollar. Purple Co. Direct Materials Purchases Budget For the Year Ending December 31 Direct Materials Total Units required for production of Product X lbs . lbs. B . Unit price $ Total direct materials purchases s s
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