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I just need overhead costs :) West Partners manufactures metal fixtures. Each fitting requires both steel and an alloy that can withstand extreme temperatures. The
I just need overhead costs :)
West Partners manufactures metal fixtures. Each fitting requires both steel and an alloy that can withstand extreme temperatures. The following data apply to the production of the fittings for year 1 : The machine depreclation and other overhead costs are fixed and are based on production of 120,000 units annually. Plant capacity is 140,000 units annually. All other overhead costs are varlable. The following are forecast for year 2 A wage increase of 6 percent for both direct and Indirect labor, which was negotlated recently, will go into effect. Steel prices are expected to decrease by 5 percent while alloy prices are expected to Increase by 10 percent. Machine depreclation costs are expected to Increase by 4 percent. All other unlt overhead costs are expected to remain constant. West Partners expects to sell 104,000 units in year 2 . The current Inventory of fittings is 10,000 units. Management is forecasting much higher sales volume in year 3, so wants to have 13,000 units on hand by the end of year 2 . Steel and alloy Inventorles will not change. Sales are approximately uniform over the year. Requlred: a. Prepare a production budget for the coming year. b. Estimate the direct materlals, direct labor, and overhead costs for the coming year. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Prepare a production budget for the coming year. a. Prepare a production budget for the coming year. b. Estimate the direct materlals, direct labor, and overhead costs for the coming year. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Prepare a production budget for the coming year. Required: a. Prepare a production budget for the coming year. b. Estlmate the direct materlals, direct labor, and overhead costs for the coming year. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Estimate the direct materials, direct labor, and overhead costs for the coming year. Note: Do not round intermediate calculations. Round final answers to the nearest whole dollar. West Partners manufactures metal fixtures. Each fitting requires both steel and an alloy that can withstand extreme temperatures. The following data apply to the production of the fittings for year 1 : The machine depreclation and other overhead costs are fixed and are based on production of 120,000 units annually. Plant capacity is 140,000 units annually. All other overhead costs are varlable. The following are forecast for year 2 A wage increase of 6 percent for both direct and Indirect labor, which was negotlated recently, will go into effect. Steel prices are expected to decrease by 5 percent while alloy prices are expected to Increase by 10 percent. Machine depreclation costs are expected to Increase by 4 percent. All other unlt overhead costs are expected to remain constant. West Partners expects to sell 104,000 units in year 2 . The current Inventory of fittings is 10,000 units. Management is forecasting much higher sales volume in year 3, so wants to have 13,000 units on hand by the end of year 2 . Steel and alloy Inventorles will not change. Sales are approximately uniform over the year. Requlred: a. Prepare a production budget for the coming year. b. Estimate the direct materlals, direct labor, and overhead costs for the coming year. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Prepare a production budget for the coming year. a. Prepare a production budget for the coming year. b. Estimate the direct materlals, direct labor, and overhead costs for the coming year. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Prepare a production budget for the coming year. Required: a. Prepare a production budget for the coming year. b. Estlmate the direct materlals, direct labor, and overhead costs for the coming year. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Estimate the direct materials, direct labor, and overhead costs for the coming year. Note: Do not round intermediate calculations. Round final answers to the nearest whole dollarStep by Step Solution
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