Help with this question please? Thanks!!
Help with this question Please? Thanks!!
Other data include: |(Click the icon to view the other data.) Skubas, Inc., manufactures and sells snowboards. Skubas manufactures a single model, the Pipex. In late 2020, Skubas's management accountant gathered the following data to prepare budgets for January 2021: (Click the icon to view the materials and labor requirements) i (Click the icon to view the additional information.) |(Click the icon to view the direct materials inventories) (Click the icon to view the additional information.) The inventoriable unit cost for ending finished goods inventory on December 31, 2020, is $240.00. Assume Skubas uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations. Read the requirements. X Data Table i Materials and Labor Requirements Direct materials Wood Fiberglass Direct manufacturing labor 8 board feet (b.f.) per snowboard 6 yards per snowboard 6 hours per snowboard Print Done More Info Skubas's CEO expects to sell 1,800 snowboards during January 2021 at an estimated retail price of $550 per board. Further, the CEO expects 2021 beginning inventory of 500 snowboards and would like to end January 2021 with 700 snowboards in stock. Print Done X Data Table Direct Materials Inventories Beginning Inventory January 1, 2021 Ending Inventory January 31, 2021 Wood 2,010 b.f. 1,510 b.f. Fiberglass 1,010 yards 2,500 yards Print Done More Info Variable manufacturing overhead is $10 per direct manufacturing labor-hour. There are also $24,000 in fixed manufacturing overhead costs budgeted for January 2021. Skubas combines both variable and fixed manufacturing overhead into a single rate based on direct manufacturing labor-hours. Variable marketing costs are allocated at the rate of $260 per sales visit. The marketing plan calls for 35 sales visits during January 2021. Finally, there are $32,000 in fixed operating (nonmanufacturing) costs budgeted for January 2021. Print Done i Data Table 2020 Unit Price 2021 Unit Price Wood 29.00 per b.f. Fiberglass $ 5.00 per yard 31.00 per b.f. 10.00 per yard 26.00 per hour Direct manufacturing labor 25.00 per hour Print Done Requirement 11. Prepare the budgeted operating income statement for Skubas, Inc., for January 2021. Budgeted Operating Income Statement For January 2021 Revenues Cost of goods sold Gross margin Operating (nonmanufacturing) costs Operating income Requirement 12. What questions might the CEO ask the management team when reviewing the budget? Should the CEO set stretch targets? Explain briefly. First, select the questions that the CEO might ask the marketing manager. (Select all that apply.) Could direct materials inventory be increased? Could efficiency and productivity of direct materials and direct manufacturing labor be decreased? Is the revenue growing faster than the market? Should the company increase marketing and advertising spending to grow sales? Would increasing the sales force or giving salespersons stronger incentives result in higher sales? Requirement 12. What questions might the CEO ask the management team when reviewing the budget? Should the CEO set stretch targets? Explain briefly. First, select the questions that the CEO might ask the marketing manager. (Select all that apply.) Now, select the questions that the CEO might ask the production manager. (Select all that apply.) Could direct materials inventory be reduced? Could production be more closely tailored to demand? Could the efficiency and productivity of direct materials and direct manufacturing labor be increased? Is the revenue growing faster than the market? Should the company increase marketing and advertising spending to grow sales? Would increasing the sales force or giving salespersons stronger incentives result in higher sales? Now, select the questions that the CEO might ask the production manager. (Select all that apply.) Should the CEO set stretch targets? Explain briefly. The CEO because: (Select all that apply.) should not set stretch targets should set stretch targets that are challenging but achievable Requirem m better manage the company? creating some performance anxiety motivates employees to exert extra effort and attain better performance. setting challenging targets motivates employees to reach these targets because failing to achieve a target is seen as failing. setting targets that are very difficult or impossible to achieve motivates employees. stretch targets always pressure employees into engaging in illegal or unethical practices. Requirement 13. How does preparing the budget help Skubas' management team better manage the company? Preparing a budget helps Skubas, Inc.: (Select all that apply.) coordinate and communicate across different parts of the organization. create a framework for judging performance. look for ways to increase efficiencies and reduce costs. look for ways to improve quality and efficiency while also increasing input prices. manage costs based on revenues and production needs. motivate managers and employees to increase inventory and achieve higher costs. e next question. Requirement 13. How does preparing the budget help Skubas' management team better manage the company? Preparing a budget helps Skubas, Inc.: (Select all that apply.) Other data include: |(Click the icon to view the other data.) Skubas, Inc., manufactures and sells snowboards. Skubas manufactures a single model, the Pipex. In late 2020, Skubas's management accountant gathered the following data to prepare budgets for January 2021: (Click the icon to view the materials and labor requirements) i (Click the icon to view the additional information.) |(Click the icon to view the direct materials inventories) (Click the icon to view the additional information.) The inventoriable unit cost for ending finished goods inventory on December 31, 2020, is $240.00. Assume Skubas uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations. Read the requirements. X Data Table i Materials and Labor Requirements Direct materials Wood Fiberglass Direct manufacturing labor 8 board feet (b.f.) per snowboard 6 yards per snowboard 6 hours per snowboard Print Done More Info Skubas's CEO expects to sell 1,800 snowboards during January 2021 at an estimated retail price of $550 per board. Further, the CEO expects 2021 beginning inventory of 500 snowboards and would like to end January 2021 with 700 snowboards in stock. Print Done X Data Table Direct Materials Inventories Beginning Inventory January 1, 2021 Ending Inventory January 31, 2021 Wood 2,010 b.f. 1,510 b.f. Fiberglass 1,010 yards 2,500 yards Print Done More Info Variable manufacturing overhead is $10 per direct manufacturing labor-hour. There are also $24,000 in fixed manufacturing overhead costs budgeted for January 2021. Skubas combines both variable and fixed manufacturing overhead into a single rate based on direct manufacturing labor-hours. Variable marketing costs are allocated at the rate of $260 per sales visit. The marketing plan calls for 35 sales visits during January 2021. Finally, there are $32,000 in fixed operating (nonmanufacturing) costs budgeted for January 2021. Print Done i Data Table 2020 Unit Price 2021 Unit Price Wood 29.00 per b.f. Fiberglass $ 5.00 per yard 31.00 per b.f. 10.00 per yard 26.00 per hour Direct manufacturing labor 25.00 per hour Print Done Requirement 11. Prepare the budgeted operating income statement for Skubas, Inc., for January 2021. Budgeted Operating Income Statement For January 2021 Revenues Cost of goods sold Gross margin Operating (nonmanufacturing) costs Operating income Requirement 12. What questions might the CEO ask the management team when reviewing the budget? Should the CEO set stretch targets? Explain briefly. First, select the questions that the CEO might ask the marketing manager. (Select all that apply.) Could direct materials inventory be increased? Could efficiency and productivity of direct materials and direct manufacturing labor be decreased? Is the revenue growing faster than the market? Should the company increase marketing and advertising spending to grow sales? Would increasing the sales force or giving salespersons stronger incentives result in higher sales? Requirement 12. What questions might the CEO ask the management team when reviewing the budget? Should the CEO set stretch targets? Explain briefly. First, select the questions that the CEO might ask the marketing manager. (Select all that apply.) Now, select the questions that the CEO might ask the production manager. (Select all that apply.) Could direct materials inventory be reduced? Could production be more closely tailored to demand? Could the efficiency and productivity of direct materials and direct manufacturing labor be increased? Is the revenue growing faster than the market? Should the company increase marketing and advertising spending to grow sales? Would increasing the sales force or giving salespersons stronger incentives result in higher sales? Now, select the questions that the CEO might ask the production manager. (Select all that apply.) Should the CEO set stretch targets? Explain briefly. The CEO because: (Select all that apply.) should not set stretch targets should set stretch targets that are challenging but achievable Requirem m better manage the company? creating some performance anxiety motivates employees to exert extra effort and attain better performance. setting challenging targets motivates employees to reach these targets because failing to achieve a target is seen as failing. setting targets that are very difficult or impossible to achieve motivates employees. stretch targets always pressure employees into engaging in illegal or unethical practices. Requirement 13. How does preparing the budget help Skubas' management team better manage the company? Preparing a budget helps Skubas, Inc.: (Select all that apply.) coordinate and communicate across different parts of the organization. create a framework for judging performance. look for ways to increase efficiencies and reduce costs. look for ways to improve quality and efficiency while also increasing input prices. manage costs based on revenues and production needs. motivate managers and employees to increase inventory and achieve higher costs. e next question. Requirement 13. How does preparing the budget help Skubas' management team better manage the company? Preparing a budget helps Skubas, Inc.: (Select all that apply.)
