Exercise #1

Help Answering the last one... please.

AYAYAI COMPANY Assembling Department Flexible Budget Report Differenc Favorable Unfavorab 8 Neither Favor Budget Actual Costs nor Unfavor units 57,000 57,000 0 Variable costs * Direct materials 45,600 $46.200 600 Unfavorable Direct labor 51,300 50.500 800 Favorable Indirect materials 22,800 23.700 900 Unfavorable Indirect labor 17,100 17.300 200 Unfavorable Utilities 14,250 14.650 400 Unfavorable Maintenance 5,700 6.000 300 Unfavorable Total variable 156,750 158.350 1,600 Favorable Fixed costs Rent 10,000 101000 O Neither Supervision 16,000 16,000 Neither Depreciation 5.000 5.000 Neither Total fixed 31,000 31,000 O Neither Total costs 187,750 S $189.350 1,600 Unfavorable(d) Prepare the direct labor budget for the year. (Round Direct labor time per unit answers to 1 decimal place, e.g. 52.7.) BRIDGEPORT INC. Direct Labor Budget JB 50 JB 60 Total $ $ eTextbook and MediaDirect Labor Cost per Hour Expected Unit Sales Units to be Produced Total Materials Required Total Cost of Direct Materials Purchases Total Required Units Direct Labor Time per Unit Direct Materials per Unit Cost per Pound Direct Materials Purchases Total Required Direct Labor Hours Desired Ending Finished Goods Units Total Direct Labor Cost Desired Ending Direct Materials Required Production Units Beginning Finished Goods Units Beginning Direct Materials Total Pounds Needed for ProductionA C D m Direct Material Budget Details JB 50 JB 60 Total Units to be produced 396500 207600 604100 Direct material per unit 2 3 Total pounds needed for production 793000 622800 1415800 Desired ending direct material 34800 19900 Total required units 827800 642700 Beginning Direct Material 43300 12700 10 Direct Material Purchase 784500 630000 11 Cost per pound 3 3 12 Total costs of Direct Material Purchase 2353500 1890000 4243500 13Bridgeport Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product Product JB 50 JB 60 Sales budget: Anticipated volume in units 402,600 201,800 Unit selling price $23 $27 Production budget: Desired ending finished goods units 28,700 19,900 Beginning finished goods units 34,800 14,100 Direct materials budget: Direct materials per unit (pounds) 2 3 Desired ending direct materials pounds 34,800 19,900 Beginning direct materials pounds 43,300 12,700 Cost per pound $3 $3 Direct labor budget: Direct labor time per unit 0.4 0.6 Direct labor rate per hour $12 $12 Budgeted income statement: Total unit cost $12 $22 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $661,000 for product JB 50 and $365,000 for product JB 60, and administrative expenses of $544,000 for product JB 50 and $345,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. (a) Your answer is correct. Prepare the sales budget for the year. BRIDGEPORT INC. Sales Budget For the Year Ending December 31, 2017 JB 50 JB 60 Total Expected unit 402,600 201,800 sales Unit selling 23 27 price Total sales 9259800 5448600 14.7 eTextbook and Media Attempts: 2 of 3 used(bi Your answer is correct. Prepare the production budget for the year. BRIDGEPORT INC. Production Budget For the Year Ending December 31, 2017 JB 50 Expected Unit Sales 402600 Add Desired Ending Finished Goods Units 28700 Total Required Units 431300 Less # Beginning Finished Goods Units 34,800 Required Production Units 396500 eTextbook and Media Attempts: 3 of 3 usedAYAYAI COMPANY Assembling Department Flexible Budget Report Difference Favorable Unfavorabl Neither Favor Budget Actual Costs nor Unfavora $ $ $Depreciation Direct Labor Direct Materials Fixed Costs Indirect Labor Indirect Materials Maintenance Rent Supervision Total Costs Total Fixed Costs Total Variable Costs Units Utilities Variable Costs\fAyayai Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. AYAYAI COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Favorable Manufacturing Costs Budget Actual Unfavorable Variable costs Direct materials $47,200 $46,200 $1,000 Favorable Direct labor 53,100 50,500 2,600 Favorable Indirect materials 23,600 23,700 100 Unfavorable Indirect labor 17,700 17,300 400 Favorable Utilities 14,750 14,650 100 Favorable Maintenance 5,900 6,000 100 Unfavorable Total variable 162.250 158,350 3,900 Favorable Fixed costs Rent 10,000 10,000 -0- Supervision 16,000 16,000 -0- Depreciation 5,000 5.000 -0- Total fixed 31,000 31,000 .0- Total costs $193,250 $189,350 $3,900 Favorable The monthly budget amounts in the report were based on an expected production of 59,000 units per month or 708,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 57,000 units were produced. (a) Your answer is correct. State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is $ 31,000 + variable costs of $ 2.75 per unit