Amber Chemical Company currently operates three manufacturing plants in Colorado, Utah, and Arizona. Annual carbon emissions for these plants in the first quarter of $2021$ are $180,000$ metric Fiberglass

Direct materials to be used this period

Now prepare the direct material purchases budget for January $2021.$

Direct Materials Purchases Budget

For January $2021$

Physical Units Budget

To be used in production

Add target ending inventory

Total requirement

Deduct beginning inventory

Purchases to be made

Cost Budget

Purchases $($Click the icon to view the materials and labor requirements$)$

$($Click the icon to view the additional information.$)$

$($Click the icon to view the direct materials inventories$)$

$($Click the icon to view the additional information.$)$

The inventoriable unit cost for ending finished goods inventory on December $31,2020$is

$$300\mathrm{.}00.$ Assume Skulasuses a FIFO inventory method for both direct materials and

finished goods. Ignore work in process in your calculations.

Read the requirements.

Requirement $4.$ Prepare a direct manufacturing labor budget for January $2021.($Abbreviation used: DMLH $=$ Direct manufacturing labor hours.$)$

Requirement $5.$ Prepare a manufacturing overhead budget for January $2021.$

Begin the manufacturing overhead cost budgets by first determining the formula, then calculate the variable manufacturing overhead costs. $($Abbreviation used: Manuf. $=$ Manufacturing.$)$

$=$

Variable manufacturing overhead costs

$=$

$=$

Now prepare the manufacturing overhead cost budgets.

Manufacturing Overhead Budget

For January $2021$

Variable manufacturing overhead costs

Fixed manufacturing overhead costs $($Click the icon to view the materials and labor requirements$)$

$($Click the icon to view the additional information.$)$

$($Click the icon to view the direct materials inventories$)$

$($Click the icon to view the additional information.$)$

The inventoriable unit cost for ending finished goods inventory on December $31,2020$is

$$300\mathrm{.}00.$ Assume Skulasuses a FIFO inventory method for both direct materials and

finished goods. Ignore work in process in your calculations.

Read the requirements.

Requirement $4.$ Prepare a direct manufacturing labor budget for January $2021.($Abbreviation used: DMLH $=$ Direct manufacturing labor hours.$)$

Requirement $5.$ Prepare a manufacturing overhead budget for January $2021.$

Begin the manufacturing overhead cost budgets by first determining the formula, then calculate the variable manufacturing overhead costs. $($Abbreviation used: Manuf. $=$ Manufacturing.$)$

$=$

Variable manufacturing overhead costs

$=$

$=$

Now prepare the manufacturing overhead cost budgets.

Manufacturing Overhead Budget

For January $2021$

Variable manufacturing overhead costs

Fixed manufacturing overhead costsMore info

Variable manufacturing overhead is $$9$ per direct manufacturing labor$-$hour. There are also $$55,000$ in

fixed manufacturing overhead costs budgeted for January $2021.$ Skulas combines both variable and

fixed manufacturing overhead into a single rate based on direct manufacturing labor$-$hours. Variable

marketing costs are allocated at the rate of $$280$ per sales visit. The marketing plan calls for $37$ sales

visits during January $2021.$ Finally, there are $$34,000$ in fixed operating $($nonmanufacturing$)$ costs

budgeted for January $2021.$

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rhead budget for January $2021.$

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More info

Skulas's CEO expects to sell $2,000$ snowboards during January $2021$ at an estimated retail price of

$$650$ per board. Further, the CEO expects $2021$ beginning inventory of $300$ snowboards and would

like to end January $2021$ with $500$ snowboards in sto

tons per quarter $($or $720,000$ metric tons in $2021).$ Amber management is investigating improved manufacturing techniques that will reduce annual carbon emissions to below $693,000$ metric tons so

that the company can meet Environmental Protection Agency guidelines by $2022.$ Costs and benefits are as follows:

$($Click the icon to view the costs and benefits.$)$

Read the requirements.

Requirement $1.$ If Amber reduces emissions by $3\%$ each quarter, beginning with the second quarter of $2021,$ will the company reach its goal of $693,000$ metric tons by the end of $2022?($Round all

intermediary calculations and the amounts you input in the cells to the nearest dollar.$)$

Begin by calculating the quarterly emissions for each quarter through the end of $2022.$

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