Flexible Budgeting At the beginning of the period, the Fabricating Department budgeted direct labor of $109,200 and equipment depreciation of $46,000 for 7,800 hours of production. The department actually completed 10,000 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting. Production Budget Pasadena Candle Inc. projected sales of 46,000 candles for January. The estimated January 1 inventory is 2,300 units, and the desired January 31 inventory is 5,000 units. Prepare a production budget report in units for Pasadena Candle Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Pasadena Candle Inc. Production Budget For the Month Ending January 31 Expected units to be sold Desired ending inventory, January 31 Total units available Estimated beginning inventory, January 1 Total units to be produced in January Direct Materials Purchases Budget Pasadena Candle Inc. budgeted production of 720,000 candles for the January. Wax is required to produce a candle. Assume 12 ounces of wax is required for each candle. The estimated January 1 wax inventory is 18,300 pounds. The desired January 31 wax inventory is 13,500 pounds. If candle wax costs $1.20 per pound, determine the direct materials purchases budget for January. (One pound = 16 ounces.) Round all computed answers to the nearest whole number. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Pasadena Candle Inc. Direct Materials Purchases Budget For the Month Ending January 31 Pounds of wax required for production: Candles Desired ending inventory, January 31 Total units available Estimated beginning inventory, January 1 Total pounds to be purchased Unit price Total direct materials to be purchased in January Direct Labor Cost Budget Pasadena Candle Inc. budgeted production of 51,000 candles for January. Each candle requires molding. Assume that 20 minutes are required to mold each candle. If molding labor costs $17 per hour, determine the direct labor cost budget for January. Round total direct labor cost to the nearest dollar, if required. Pasadena Candle Inc. Direct Labor Cost Budget For the Month Ending January 31 Hours required for assembly: Candles min. -- min. Convert minutes to hours hrs. Molding hours Hourly rate Total direct labor cost Flexible Budget for Assembly Department Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department: Direct' labor per filing cabinet 30 minutes Supervisor salaries $120,000 per month Depreciation $30,000 per month Direct labor rate $15 per hour Prepare a flexible budget for 8,000, 10,000, and 12,000 filing cabinets for the month ending February 28 in the Assembly Department similar to Exhibit 5. Round your final answers to the whole dollar, if required. Cabinaire Inc. Assembly Department Budget For the Month Ending February 28 (assumed data) Units of production 8,000 10,000 12,000 Variable cost: Direct labor 96,000 X $ 120,000 Total variable cost Fixed cost: Supervisor salaries Depreciation Total fixed cost Total department costs
