E22-9 Rey Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available. Material Loading Charges Charges Technicians' wages and benetits $150,000 Parts manager's salary and benefits $34.000 Office employee's salary and benefits 30,000 15.000 Other overhead 15.000 42.000 Total budgeted cost $195.000 $91000 The company has budgeted for 0.250 hours of technician time during the coming year. 11 desires a $38 profit martin per hour of labor and an 80 profit on parts. It estimates the total invoice cost of parts and materials in 2017 will be $700.000 Tentacriores (a) Compute the rate charged per hour of laben (b) Compute the material loadins penentante (c) RCE has just received at forbide But Builders on a 1.200.000 new home. The company estimates that it would run Khoa and 40.000 marts Compute the total estimated bill Assignment 2 MA Fall 2020-2021 rences Mailings Review View ABCDE Nam ABCD AaBbCcDc Azbbced A Heading deg 2 A No Spacing $20 $25 P9-2A Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017 Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 400,000 200,000 Unit selling price Production budget: Desired ending finished goods units 30,000 15,000 Beginning finished goods units 25.000 10.000 Direct materials budget: Direct materials per unit (pounds) 2 3 Desired ending direct materials pounds 30,000 10,000 Beginning direct materials pounds 40.000 15,000 Cost per pound $3 $4 Direct labor budget. Direct labor time per unit 0.4 Direct labor rate per hour $12 Budgeted income statement: Total unit cost $13 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $500,000 for product JB 50 and $360,000 for product JB 60, and administrative expenses of 5540,000 for product JB 50 and $340,000 for product B 60. Interest expense is $150,000 (not allocated to products) Income taxes are expected to be 30% Instructions Prepare the following budgets for the year. Show data for each product. Ouarterly budgets should not be prepared (A) Sales (d) Direct labor (b) Production (e) Multiple-step income statement (Note: Income taxes are (c) Direct materials not allocated to be products 0.6 $12 Assignment 2 MA Fall 2020-2021 Q eferences Mailings Review View E.EE 1 24 ABCODE ABECEDAR AaBbCcD Heading 1 IND . Normal No Spacing 1 Question 3 P9-3A Hill Industries had sales in 2016 of $6,800,000 and gross profit of $1,100,000. Management is considering two alternative budget plans to increase its gross profit in 2017 Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 10% from its 2016 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 100,000 units At the end of 2016, Hill has 40,000 units of inventory on hand. IF Plan A is accepted. the 2017 ending inventory should be equal to 5% of the 2017 sales. If Plan B is accepted, the ending inventory should be equal to 60,000 units. Each unit produced will cost $1.80 in direct labor $1.40 in direct materials, and $1.20 in variable overhead. The fixed over head for 2017 should be $1.895,000. Instructions (a) Prepare a sales budget for 2017 under each plan. (b) Prepare a production budget for 2017 under each plan le Compute the production cost per unit under cach plan. Why is the cost per unit different for each of the two plans? (Round to two decimals (d) Which plan should be accepted? (Hint: Compute the gross profit under each plan.)