How to solve

Skysong Company is well known for its high$-$quality men's shoes. It manufactures all of its products in regional facilities throughout

North America, trying to source DM locally when possible. Managers in the production area of one of its plants are beginning to work

on next year's first$-$quarter budgets to ensure they'll have the necessary resources available.

Sales are expected to be steady, with $3,400$ pairs of shoes $($one pair is one unit$)$ budgeted in January. February and March have

anticipated sales volume of $3,800$ units each, while April will be down slightly to $3,300$ units. In order to prevent stock$-$outs, Skysong's

policy requires $15\%$ of the following month's sales be held in ending inventory for all of its shoes. This policy is expected to be met on

December $31$ of this year. Additional DL and MOH information is as follows.

Standard DL time

$0\mathrm{.}5$ hours per unit

DL rate

$$13\mathrm{.}00$ per DL hour

Variable MOH rate

$$1\mathrm{.}40$ per DL hour

Fixed MOH'costs

$($a$)$

Your Answer

Correct Answer

V Your answer is correct.

Prepare Skysong's production budget for quarter $1$ for this facility.

Budgeted Sales Volume

January

February

Target Ending FG Inventory

$($c$)$

Prepare the MOH budget for quarter $1$ for this facility, identifying total MOH costs as well as cash outlay amount for MOH.

$($Round answers to $2$ decimal places, eg$.15\mathrm{.}25.)$

January

Budgeted DL hours

Budgeted Variable$-$MOH Rate per DL Hour

Supervisor Salaries

Depreciation on Plant Assets