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Clairpointe Accessories manufactures products for food preparation at several different manufacturing sites. The following costs and other data apply to unit production from the year
Clairpointe Accessories manufactures products for food preparation at several different manufacturing sites. The following costs and other data apply to unit production from the year just ending: Direct materials per unit board feet of wood at $ per board foot pounds of plastic at $ per pound Direct labor per unit hour at $ per hour Overhead per unit Indirect labor $ Indirect materials Power Equipment Facilities Total overhead per unit $ The plant controller at the Norfolk Street facility is preparing the budget for the coming year. You learn that equipment and facilities costs are fixed and are based on a normal production of units per year. Other overhead costs are variable. Plant capacity is sufficient to produce units per year. Direct labor costs per hour are expected to rise by percent this year. Wood prices are expected to remain unchanged, but plastic prices are expected to decrease by percent. A new production method, which will be put into use at the beginning of the coming year, will result in a reduction of the wood required to produce a unit by percent. No other costs are expected to change. During the coming budget period, Clairpointe expects to sell units. Finished goods inventory is targeted to decrease from the current balance of units to units as part of a corporatewide initiative to lower inventory levels. Production will occur evenly throughout the year. Inventory levels for wood and plastic are expected to remain unchanged throughout the year. There is no workinprocess inventory. Required: Prepare a production budget for the coming year. Estimate the direct materials, direct labor, and overhead costs for the coming year.
Clairpointe Accessories manufactures products for food preparation at several different manufacturing sites. The following costs and other data apply to unit production from the year just ending:
Direct materials per unit
board feet of wood at $ per board foot
pounds of plastic at $ per pound
Direct labor per unit
hour at $ per hour
Overhead per unit
Indirect labor $
Indirect materials
Power
Equipment
Facilities
Total overhead per unit $
The plant controller at the Norfolk Street facility is preparing the budget for the coming year. You learn that equipment and facilities costs are fixed and are based on a normal production of units per year. Other overhead costs are variable. Plant capacity is sufficient to produce units per year.
Direct labor costs per hour are expected to rise by percent this year. Wood prices are expected to remain unchanged, but plastic prices are expected to decrease by percent. A new production method, which will be put into use at the beginning of the coming year, will result in a reduction of the wood required to produce a unit by percent. No other costs are expected to change.
During the coming budget period, Clairpointe expects to sell units. Finished goods inventory is targeted to decrease from the current balance of units to units as part of a corporatewide initiative to lower inventory levels. Production will occur evenly throughout the year. Inventory levels for wood and plastic are expected to remain unchanged throughout the year. There is no workinprocess inventory.
Required:
Prepare a production budget for the coming year.
Estimate the direct materials, direct labor, and overhead costs for the coming year.
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