+ Chapter 9 Question 42 of 50 0.28/1 Current Attempt in Progress Diane Buswell is preparing the 2020 budget for one of Current Designs'rotomolded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2020. Quarter 1 2,000 kayaks Quarter 2 2,400 kayaks Quarter 3 1,800 kayaks Quarter 4 1,800 kayaks Current Designs' policy is to have finished goods ending inventory in a quarter equal to 15% of the next quarter's anticipated sales. Preliminary sales projections for 2021 are 1.100 units for the first quarter and 2,400 units for the second quarter. Ending inventory of finished goods at December 31, 2019, will be 300 rotomolded kayaks. Production of each kayak requires 58 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). Company policy is that the ending inventory of polyethylene powder should be 20% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31, 2019, is 19,600 pounds. The finishing kits can be assembled as they are needed. As a result, Current Designs does not maintain a significant inventory of the finishing kits. The polyethylene powder used in these kayaks costs $ 1.50 per pound, and the finishing kits cost $ 160 each. Production of as kayak requires 4 hours of time by more experienced, type l employees and 5 hours of finishing time by type II employees. The type 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 $ 50 per unit sold plus $ 6,100 per quarter, Manufacturing overhead is assigned at 150% of labor costs. (a) + Chapter 9 Question 42 of 50 > 0.84 / 1 Your answer is correct. Prepare the production budget for this product line by quarter and in total for 2020. CURRENT DESIGNS Production Budget For the Year Ending December 31, 2020 Q1 Q2 Expected Unit Sales 2000 2400 Add + Desired Ending Finished Goods Unit 1 360 270 Total Required Units 2360 2670 Less Beginning Finished Goods Unit . 300 360 i Required Production Units 2060 2310 e Textbook and Media Attempts: 2 of 3 used (b) + Chapter 9 Question 42 of 50 > 0.84 / 1 Your answer is correct. Prepare the production budget for this product line by quarter and in total for 2020. CURRENT DESIGNS Production Budget or the Year Ending December 31, 2020 Q2 Q3 Q4 Total 2400 1800 1800 270 270 165 2670 2070 1965 360 i 270 i 270 i 2310 1800 1695 7865 e Textbook and Media Attempts: 2 of 3 used (b) + Chapter 9 Question 42 of 50 0.84/1 E CURRENT DESIGNS Direct Materials Budget-Polyethylen For the Year Ending December 31, 2021 Qu Q1 Q2 Units to be Produced 2060 2310 Pounds of Polyethylene Powder Per Unit . 58 58 Total Pounds Needed for Production . 119480 133980 Add + Desired Ending Inventory of Powder 26796 20880 Total Pounds of Powder Required 146276 154860 Less : Beginning Inventory of Powder : 19600 i 26796 i Pounds of Polyethylene Powder to be purchased 126676 128064 Cost Per Pound $ 1.50 $ 1.50 Cost of Polyethylene Powder to be purchased 2 190014 192096 $ $ Cost of Required Finishing Kits 329600 369600 Total Costs for Direct Materials $ 519614 $ 561696 + Chapter 9 Question 42 of 50 0.84 / 1 erials Budget-Polyethylene Powder Year Ending December 31, 2020 Quarter Q2 Q3 Q4 Total 2310 1800 1695 58 58 58 133980 104400 98310 20880 19662 15022 154860 124062 113332 26796 i 20880 i 19662 i 128064 103182 93670 1.50 1.50 $ $ 1.50 192096 154773 $ 140505 $ 369600 288000 271200 561696 $ $ 442773 $ 411705 $ 1935788 Chapter 9 Question 42 of 50 0.84/1 E Direct labor Budget For the Year Ending December 31, 2020 More skilled labor Q1 Q2 Units to be Produced 2060 2310 Direct Labor Time (Hours) Per Unit Total Required Direct Labor Hours 8240 9240 Direct Labor Cost Per Hour 15 Total Direct Labor Cost for More Skilled Labor 123600 138600 Less skilled labor Q1 Q2 Units to be Produced 2060 2310 Direct Labor Time (Hours) Per Unit Total Required Direct Labor Hours 10300 11550 Direct Labor Cost Per Hour 12 12 Total Direct Labor Cost for Less Skilled Labor 123600 138600 $ Total Direct Labor Cost 247200 277200 + Chapter 9 Question 42 of 50 0.84 / 1 Direct labor Budget For the Year Ending December 31, 2020 , Q2 Q3 Q4 TOTAL 2310 1800 1695 7865 4 4. 4 9240 7200 6780 31460 15 15 15 15 $ $ $ $ $ 138600 $ $ 108000 $ 101700 471900 $ Q2 Q3 Q4 TOTAL 2310 1800 1695 7865 5 5 5 11550 9000 8475 39325 12 12 12 12 $ $ $ $ 138600 108000 101700 $ 471900 $ $ $ 277200 $ $ 216000 203400 $ $ 943800 $ + Chapter 9 Question 42 of 50 > 0.84 / 1 Your answer is correct. Prepare the manufacturing overhead budget for this product line by quarter and in total for 2020. CURRENT DESIGN Manufacturing Overhead For the Year Ending December 3 01 Q2 Direct Labor 247200 $ 277200 Manufacturing Overhead Rate Per Direct Labor Dollar 150 % 150 % Total Manufacturing Overhead 370800 $ 415800 e Textbook and Media Attempts: 1 of 3 used (e) Your answer is partially correct. Prepare the selling and administrative expenses budget for this product line by quarter and in total for 2020, SUOMAL + Chapter 9 Question 42 of 50 > 0.84/1 (e) Your answer is partially correct, Prepare the selling and administrative expenses budget for this product line by quarter and in total for 2020. CURRENT DESIGNS Selling and Administrative Expense Budget For the Year Ending December 31, 2020 Q2 Q3 Q4 TOTAL 2400 1800 1800 8000 $ $ e Textbook and Media Save for Later Attempts: 1 of 3 used Submit