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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

CD9 Current Designs
Diane Buswell is preparing the 2020 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 2020.
Quarter 11,000 kayaks
Quarter 21,500 kayaks
Quarter 3750 kayaks
Quarter 4750 kayaks
Current Designs' policy is to have finished goods ending inventory in a quarter equal to 20% of the next quarter's anticipated
sales. Preliminary sales projections for 2021 are 1,100 units for the first quarter and 1,500 units for the second quarter. Ending
inventory of finished goods at December 31,2019, will be 200 rotomolded kayaks.
Production of each kayak requires 54 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). Company
policy is that the ending inventory of polyethylene powder should be 25% of the amount needed for production in the next
quarter. Assume that the ending inventory of polyethylene powder on December 31,2019 is 19,400 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 $1.50 per pound, and the finishing kits cost $170 each. Production of a
single kayak requires 2 hours of time by more experienced, type I employees and 3 hours of finishing time by type II employees.
The type I employees are paid $15 per hour, and the type II employees are paid $12 per hour.
Selling and administrative expenses for this line are expected to be $45 per unit sold plus $7,500 per quarter. Manufacturing
overhead is assigned at 150% of labor costs.
Instructions
Prepare the production budget, direct materials budget, direct labor budget for this product line by quarter and in total for 2020.
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 labor/unit x 3 x 3 x 3 x 3 x 3
Total number of hours of less skilled labor ?????
Hourly rate for less skilled labor x $12 x $12 x $12 x $12 x $12
Total cost of less skilled labor ?????
Total cost for direct labor ?????

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