Question

1 Approved Answer

Posted on Sep 30, 2024

Check my work 3 Part 2 pone 00:32 Required information Problem 9-31 Production and Direct-Labor Budgets; Activity-Based Overhead Budget (10 93, 94, 95, 9 6)

Check my work 3 Part 2 pone 00:32 Required information Problem 9-31 Production and Direct-Labor Budgets; Activity-Based Overhead Budget (10 93, 94, 95, 9 6) The following information applies to the questions displayed below) Spifty Shades Corporation manufactures are frames for sunglasses Talla Demarest controles responsible for preparing the company's master budget in compling the budget data for 20xt.Demarest hastered trat new automated production equipment will be installed on March t This will reduce the direct labor per frame tom 20 hours to 175 hours. Labor-related costs include pension contributions of $130 per hour, workers' compensation insurance of 5100 per hout. employee medical insurance of $4 per hour and employer contributions to Social Security equal to 5.00 percent of direct labor wages. The cost of employee benefits paid to the company on its employees is rented as a direct labor.cost Soly Shades Corporation has a labor contract that calls for a wape increase to $19.00 per hour on April 1, 2011. Management expects to have 16.000 frames on hand at December 31, 2060 and has a policy of carrying an end of month inventory of 100 percent of the following month's les plus 50 percent of the second following month's These and other data compiled by Demarest are summarized in the folowing table January February Art Direct-Tabor hours per wit 2.0 1.75 1.15 1.5 wage per direct labore 17.00 $ 17.0 517.40 $19.00 $19.00 Estimated unit sales 10.00 12.000 B. 9. Sales price per unit 14. Sp.50 St. Production overhead Shipping and handling (per unit sold 12.00 $ 2.0 Purchasing material handling and inspection (per unit produced 13.00 13.00 13.00 Other production overhead per direct-Labor hour) 18.00 $8.00 $8.00 18. 3. ce Marth Hay 2. 9,00 1 61.50 3.ee Problem 9-31 Part 3 January 2.e $ 17.00 10.000 $64.00 2.0 $ 17.00 12.000 $ 61.50 March 1.75 $37.co 8,00 561.50 April 1.75 $19.00 9.eta $61.50 Part 2 Direct-Labor hours per unit Wage per direct-Labor hour Estimated unit sales Sales price per unit Production overhead: Shipping and handling (per unit sold) Purchasing, material handling, and inspection (per unit produced) Other production overhead (per direct-Labor hour) May 1.15 $19.ce 9, one 561.5e $2.00 $ 2.00 $ 2.00 1 port $ 2.00 $ 3.00 $ 8.0 2.00 13.00 $ 3.00 $ 8.00 $ 3. $ 3.00 $ 8. $ 8.00 2020 Problem 9-31 Part 3 3. Prepare a production overhead budget for each month and for the first Quarter ference SPFTY SHADES CORPORATION Production Overhead Budget For First Quarter of 20+ Month January February Dipping and anting 20.0001 24,000. Purchasing, men handling, direction 30 000 25,500 Other overhead 160.000 136.000 Total production overhead $ 210,000 1 185.000 10.000 27.000 Quarter 0.000 19.500 42.000 1 143,500 Check my work 3 Part 2 pone 00:32 Required information Problem 9-31 Production and Direct-Labor Budgets; Activity-Based Overhead Budget (10 93, 94, 95, 9 6) The following information applies to the questions displayed below) Spifty Shades Corporation manufactures are frames for sunglasses Talla Demarest controles responsible for preparing the company's master budget in compling the budget data for 20xt.Demarest hastered trat new automated production equipment will be installed on March t This will reduce the direct labor per frame tom 20 hours to 175 hours. Labor-related costs include pension contributions of $130 per hour, workers' compensation insurance of 5100 per hout. employee medical insurance of $4 per hour and employer contributions to Social Security equal to 5.00 percent of direct labor wages. The cost of employee benefits paid to the company on its employees is rented as a direct labor.cost Soly Shades Corporation has a labor contract that calls for a wape increase to $19.00 per hour on April 1, 2011. Management expects to have 16.000 frames on hand at December 31, 2060 and has a policy of carrying an end of month inventory of 100 percent of the following month's les plus 50 percent of the second following month's These and other data compiled by Demarest are summarized in the folowing table January February Art Direct-Tabor hours per wit 2.0 1.75 1.15 1.5 wage per direct labore 17.00 $ 17.0 517.40 $19.00 $19.00 Estimated unit sales 10.00 12.000 B. 9. Sales price per unit 14. Sp.50 St. Production overhead Shipping and handling (per unit sold 12.00 $ 2.0 Purchasing material handling and inspection (per unit produced 13.00 13.00 13.00 Other production overhead per direct-Labor hour) 18.00 $8.00 $8.00 18. 3. ce Marth Hay 2. 9,00 1 61.50 3.ee Problem 9-31 Part 3 January 2.e $ 17.00 10.000 $64.00 2.0 $ 17.00 12.000 $ 61.50 March 1.75 $37.co 8,00 561.50 April 1.75 $19.00 9.eta $61.50 Part 2 Direct-Labor hours per unit Wage per direct-Labor hour Estimated unit sales Sales price per unit Production overhead: Shipping and handling (per unit sold) Purchasing, material handling, and inspection (per unit produced) Other production overhead (per direct-Labor hour) May 1.15 $19.ce 9, one 561.5e $2.00 $ 2.00 $ 2.00 1 port $ 2.00 $ 3.00 $ 8.0 2.00 13.00 $ 3.00 $ 8.00 $ 3. $ 3.00 $ 8. $ 8.00 2020 Problem 9-31 Part 3 3. Prepare a production overhead budget for each month and for the first Quarter ference SPFTY SHADES CORPORATION Production Overhead Budget For First Quarter of 20+ Month January February Dipping and anting 20.0001 24,000. Purchasing, men handling, direction 30 000 25,500 Other overhead 160.000 136.000 Total production overhead $ 210,000 1 185.000 10.000 27.000 Quarter 0.000 19.500 42.000 1 143,500