How do I calculate the total setup time?
* P6-40 (similar to) Question Help Pet Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Information for the two Pet Gear uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $105 per products for the month of April is given in the following tables setup-hour, $10 per machine-hour, and $15 per inspection-hour, respectively. Other information follows: (Click the icon to view the information for the two products.) (Click the icon to view the other information.) Pet Gear accounts for direct materials using a FIFO cost-flow assumption. Read the requirements (Click the icon to view the account information.) For the Month of April Other information - X - X Materials i Product Information Plastic Metal Total Physical Units Budget To be used in production 3,700 lbs. 525 Ibs. Cost Driver Information Input Prices Direct materials Add target ending inventory 360 Ibs. 75 lbs Cat-allac Dog-errific Total requirement 4,060 lbs. 600 Ibs. Number of units per batch 25 10 Plastic $ 5 per pound Deduct beginning inventory 270 Ibs. 80 lbs. Setup time per batch 1.50 hours 2.00 hours Metal $ 4 per pound 0.8 hour Direct manufacturing labor $ 10 per direct manufacturing labor hour Purchases to be made 3,790 bs. 520 ibs. Inspection time per batch 0.5 hours If necessary, round up to calculate number of batches Input Quantities per Unit of Output Cost Budget Nonmanufacturing fixed costs for March equal $30,000, half of which are salaries. Purchases 18,950 2,080 21,030 Salaries are expected to increase 5% in April. Other nonmanufacturing fixed costs Cat-allac Dog-eriffic will remain the same. The only variable nonmanufacturing cost is sales Direct materials Requirement 4. Prepare the direct manufacturing labor cost budget commission, equal to 1% of sales revenue. Plastic 4 pounds 6 pounds Direct Manufacturing Labor Costs Budget Metal 0.5 pounds 1 pound For the Month of April Print Done Direct manufacturing labor-hours (DMLH) 3 hours 5 hours Output units DMLH Total Hourly Machine-hours (MH) 11 MH 19 MH produced per unit hours wage rate Total Account Information - X Inventory Information, Direct Materials Cat-allac 550 1,650 $ 10 16,500 i Plastic Metal Dog-eriffic 250 1,250 10 12,500 Beginning inventory 270 pounds 80 pounds 29,000 Target ending inventory 360 pounds 75 pounds Total Sales and Inventory Information, Finished Goods Cat-allac Dog-eriffic Cost of beginning inventory S 999 S 256 Requirement 5. Prepare the manufacturing overhead cost budgets for each of the three activities. Begin the manufacturing overhead cost budgets for each of the three activities by first calculating the total setup time. Expected sales in units 530 265 Print Selling price S 205 S 310 Done Cat-allac Dog-errific Total Target ending inventory in units 30 10 Units to be produced 25 10 Beginning inventory in units 10 25 Units per batch Beginning inventory in dollars S 1,000 S 4,650 Number of batches 2.00 mrs. Pet Gear uses a FIFO cost-flow assumption for finished-goods inventory. Setup time per batch X Uhrs. X Total setup time hrs hrs . hrs Print Done inter any number in the edit fields and then click Check
