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CD 9 Current Designs Diane Buswell is preparing the 2 0 2 0 budget for one of Creative Design's rotomolded kayaks. Extensive meetings with members
CD Current Designs
Diane Buswell is preparing the budget for one of Creative Design's rotomolded kayaks. Extensive meetings with
members of the sales department and executive team have resulted in the following unit sales projections for
Quarter kayaks
Quarter kayaks
Quarter kayaks
Quarter kayaks
Current Designs' policy is to have finished goods ending inventory in a quarter equal to of the next quarter's anticipated
sales. Preliminary sales projections for are units for the first quarter and units for the second quarter. Ending
inventory of finished goods at December will be rotomolded kayaks.
Production of each kayak requires pounds of polyethylene powder and a finishing kit rope seat, hardware, etc. Company
policy is that the ending inventory of polyethylene powder should be of the amount needed for production in the next
quarter. Assume that the ending inventory of polyethylene powder on December is pounds. The finishing kits
can be assembled as they are needed. As a result, Current Designs does not maintain a significant inventory of the finished kits.
The polyethylene powder used in these kayaks cost $ per pound, and the finishing kits cost $ each. Production of a
single kayak requires hours of time by more experienced, type I employees and hours of finishing time by type II employees.
The type I employees are paid $ per hour, and the type II employees are paid $ per hour.
Selling and administrative expenses for this line are expected to be $ per unit sold plus $ per quarter. Manufacturing
overhead is assigned at of labor costs.
Instructions
Prepare the production budget, direct materials budget, direct labor budget for this product line by quarter and in total for
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a
Number of hours of less skilled laborunit x x x x x
Total number of hours of less skilled labor
Hourly rate for less skilled labor x $ x $ x $ x $ x $
Total cost of less skilled labor
Total cost for direct labor
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