Austin Company makes and selts artistic frames for pictures of weddings., graduations, and other special events. Ron Korn, the controller, is responsible for preparing Austin's masfer budget and has accurmilated the folowing information for 2021 : Click the icon to view some of the financial information.) (Cick the icon to view additionat information.) Read the recuirements Data table More info In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.60 per hour, worker's compensation insurance of $0.15 per hour, employee medical insurance of $0.50 per hour, and Social Security taxes. Assume that as of January 1,2021, the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by Austin on its direct manufacturing employees is treated as a direct manufacturing labor cost. Austin has a labor contract that calls for a wage increase to $11 per nour on April 1, 2021. New labor-saving machinery has been installed and will be fully operational by March 1, 2021. Austin expects to have 19,500 frames on hand at December 31,2020, and it has a policy of carrying an end-of-month inventory of 100% of the following month's sales plus 50% of the second following month's sales. Requirement 1. Prepare a production budget and a direct manifacturing labor cost budget for Austin Compony by month and for the first quarter of 2021. You may combine both budgets in one schedvle. The diroct manulacturing labor cost budget should include labor hours and show the dotails for each labor cost calegory Start the schedule by preparing the production budget and calculating the total hours of direct manufacturing labor time needed for the three months in the guarier, then calculate the values for the quarter. Finish by preparing the betiom porten of the schedule for the direct manufacturing labor by month, then quartec, (Enler the direct manufacturing labor-houre per unit to one. decima place. XX. Do not round interm calculations, and then entar all amounts in the budget fother than the direct mandacturing labor-hours per unit) to the nearest whole number.) Austin Company makes and selts artistic frames for pictures of weddings., graduations, and other special events. Ron Korn, the controller, is responsible for preparing Austin's masfer budget and has accurmilated the folowing information for 2021 : Click the icon to view some of the financial information.) (Cick the icon to view additionat information.) Read the recuirements Data table More info In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.60 per hour, worker's compensation insurance of $0.15 per hour, employee medical insurance of $0.50 per hour, and Social Security taxes. Assume that as of January 1,2021, the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by Austin on its direct manufacturing employees is treated as a direct manufacturing labor cost. Austin has a labor contract that calls for a wage increase to $11 per nour on April 1, 2021. New labor-saving machinery has been installed and will be fully operational by March 1, 2021. Austin expects to have 19,500 frames on hand at December 31,2020, and it has a policy of carrying an end-of-month inventory of 100% of the following month's sales plus 50% of the second following month's sales. Requirement 1. Prepare a production budget and a direct manifacturing labor cost budget for Austin Compony by month and for the first quarter of 2021. You may combine both budgets in one schedvle. The diroct manulacturing labor cost budget should include labor hours and show the dotails for each labor cost calegory Start the schedule by preparing the production budget and calculating the total hours of direct manufacturing labor time needed for the three months in the guarier, then calculate the values for the quarter. Finish by preparing the betiom porten of the schedule for the direct manufacturing labor by month, then quartec, (Enler the direct manufacturing labor-houre per unit to one. decima place. XX. Do not round interm calculations, and then entar all amounts in the budget fother than the direct mandacturing labor-hours per unit) to the nearest whole number.)
