Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi, could someone please give me explanation and guide me steps to do these questions? Thank you very much! A sales budget is given below

image text in transcribed

Hi, could someone please give me explanation and guide me steps to do these questions? Thank you very much!

image text in transcribedimage text in transcribed
A sales budget is given below for one of the products manufactured by the DMS Co. Selling price per unit is $12. Its sales budget for four months in 2019 is: Sales Budget (Units) January 20,000 February 35.000 March 60,000 April 40,000 The inventory of finished goods at the end of each month must equal 20% of the next month's sales. On 1 January, the finished goods inventory totaled 4,000 units. DMS Co. is also working on its direct labour budget. Each unit of output requires 2 direct labour hours. The direct labour rate is $6.00 per direct labour-hour. Production overhead costs are estimated below. The fixed costs are estimated monthly, whereas the variable costs are tied to direct labour hours as a cost driver. Fixed cost per month Variable cost per direct labour hour Supervisor salary $2000 Depreciation $200 Utilities and supplies $0.1 per direct labour hour Required: (a) Prepare a sales budget in dollar value for January, February and March 2019. (b) Prepare a production budget for January, February and March 2019. (c) Prepare a Direct Labour budget in hours and in dollar value for January, February, March 2019.Data concerning Tah Corporation's overhead cost appear below: Activity Cost Pools Total Cost Total Activity Assembling products $48,200 4,820 assembly hours Designing products $864,376 8,392 product design hours Setting up batches $5,400 120 batch set-ups Last year, Job #J34U involved 395 assembly hours, 48 product design hours and 22 batch set-ups. Required: (Round up all the answers to the nearest 2 decimal places) (a) Compute the activity rates for each of the three overhead activities. (b) How much overhead cost would be assigned to Job #J34U using the company's activity-based costing system? (c) Calculate the overhead cost for Job #J34U if the company is using a plant-wide rate based on assembly hours

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Practical Approach

Authors: Jeffrey Slater, Debra Good

13th Canadian edition

134616316, 134166698, 9780134632407 , 978-0134166698

More Books

Students also viewed these Accounting questions

Question

1. Information that is currently accessible (recognition).

Answered: 1 week ago