mahoney company makes and sells artistic frames for pictures of wedding,graduations, and other special events.
Question Help Mahoney Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron Barnhardt, the controller, is responsible for preparing Mahoney's master budget and has accumulated the following information for 2018: Click the icon to view some of the financial information.) (Click the icon to view additional information.) Read the requirements Requirement 1. Prepare a production budget and a direct manufacturing labor cost budget for Mahoney Company by month and for the first quarter of 2018. You may combine both budgets in one schedule. The direct manufacturing labor cost budget should include labor-hours and show the details for each labor cost category Start the schedule by preparing the production budget and calculating the total hours of direct manufacturing labor time needed for the three months in the quarter, then calculate the values for the quarter. Finish by preparing the bottom portion of the schedule for the direct manufacturing labor by month, then quarter. (Enter the direct manufacturing labor-hours per unit to one decimal place, X.X. Do not round interim calculations, and then enter all amounts in the budget (other than the direct manufacturing labor-hours per unit) to the nearest whole number.) Mahoney Company Click the icon to view some of the financial information.) Read the requirements yuuuunis, and other special events. Ron Barnhardt, the control (Click the icon to view additional information.) March February 19000 Quarter 37000 5000 For the Quarter Ended March 31, 2018 January Budgeted sales (units) 13000 Add target ending finished goods inventory (units) Total requirements (units) Deduct beginning finished goods inventory (units) Units to be produced Direct manufacturing labor-hours per unit Total hours of direct manufacturing labor time needed Direct manufacturing labor costs: Wages Pension contributions Workers' compensation insurance Employee medical insurance Social Security tax (employer's share) Total direct manufacturing labor costs Choose from any list or enter any number in the input fields and then continue to the next question. Type here to search RI Employee medical insurance Social Security tax (employer's share) Total direct manufacturing labor costs Requirement 2. What actions has the budget process prompted Mahoney's management to take? (Select all that apply.) Mahoney's management would look for ways to Requirement 3. How might Mahoney's managers use the budget developed in requirement 1 to better manage the company? Mahoney's management should work with employees to Choose from any list or enter any number in the input fields and then continue to the next question. Type here to search O E lij i Data Table - X 2018 May January February March 13,000 19,000 5,000 $ 54.00 $ 51.50 $ 51.50 $ April 7,000 7,000 Estimated sales in units Selling price Direct manufacturing labor-hours per unit Wage per direct manufacturing labor-hour 51.50 $ 51.50 2.5 2.5 1.5 1.5 1.5 $ 8.00 $ 8.00 $ 8.00 $ 13.00 $ 13.00 Print Done then continue to the next question. Bi Data fi More Info Estim 7,000 Sellin $1.50 In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.60 per hour, worker's compensation insurance of $0.10 per hour, employee medical insurance of $0.40 per hour, and Social Security taxes. Assume that as of January 1, 2018, the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by Mahoney on its direct manufacturing employees is treated as a direct manufacturing labor cost. Mahoney has a labor contract that calls for a wage increase to $13 per hour on April 1, 2018. New labor-saving machinery has been installed and will be fully operational by March 1, 2018. Mahoney expects to have 21,500 frames on hand at December 31, 2017, and it has a policy of carrying an end-of-month inventory of 100% of the following month's sales plus 50% of the second following month's sales. Direc 1.5 Wage 13.00 continue Print Done Question Help Mahoney Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron Barnhardt, the controller, is responsible for preparing Mahoney's master budget and has accumulated the following information for 2018: Click the icon to view some of the financial information.) (Click the icon to view additional information.) Read the requirements Requirement 1. Prepare a production budget and a direct manufacturing labor cost budget for Mahoney Company by month and for the first quarter of 2018. You may combine both budgets in one schedule. The direct manufacturing labor cost budget should include labor-hours and show the details for each labor cost category Start the schedule by preparing the production budget and calculating the total hours of direct manufacturing labor time needed for the three months in the quarter, then calculate the values for the quarter. Finish by preparing the bottom portion of the schedule for the direct manufacturing labor by month, then quarter. (Enter the direct manufacturing labor-hours per unit to one decimal place, X.X. Do not round interim calculations, and then enter all amounts in the budget (other than the direct manufacturing labor-hours per unit) to the nearest whole number.) Mahoney Company Click the icon to view some of the financial information.) Read the requirements yuuuunis, and other special events. Ron Barnhardt, the control (Click the icon to view additional information.) March February 19000 Quarter 37000 5000 For the Quarter Ended March 31, 2018 January Budgeted sales (units) 13000 Add target ending finished goods inventory (units) Total requirements (units) Deduct beginning finished goods inventory (units) Units to be produced Direct manufacturing labor-hours per unit Total hours of direct manufacturing labor time needed Direct manufacturing labor costs: Wages Pension contributions Workers' compensation insurance Employee medical insurance Social Security tax (employer's share) Total direct manufacturing labor costs Choose from any list or enter any number in the input fields and then continue to the next question. Type here to search RI Employee medical insurance Social Security tax (employer's share) Total direct manufacturing labor costs Requirement 2. What actions has the budget process prompted Mahoney's management to take? (Select all that apply.) Mahoney's management would look for ways to Requirement 3. How might Mahoney's managers use the budget developed in requirement 1 to better manage the company? Mahoney's management should work with employees to Choose from any list or enter any number in the input fields and then continue to the next question. Type here to search O E lij i Data Table - X 2018 May January February March 13,000 19,000 5,000 $ 54.00 $ 51.50 $ 51.50 $ April 7,000 7,000 Estimated sales in units Selling price Direct manufacturing labor-hours per unit Wage per direct manufacturing labor-hour 51.50 $ 51.50 2.5 2.5 1.5 1.5 1.5 $ 8.00 $ 8.00 $ 8.00 $ 13.00 $ 13.00 Print Done then continue to the next question. Bi Data fi More Info Estim 7,000 Sellin $1.50 In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.60 per hour, worker's compensation insurance of $0.10 per hour, employee medical insurance of $0.40 per hour, and Social Security taxes. Assume that as of January 1, 2018, the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by Mahoney on its direct manufacturing employees is treated as a direct manufacturing labor cost. Mahoney has a labor contract that calls for a wage increase to $13 per hour on April 1, 2018. New labor-saving machinery has been installed and will be fully operational by March 1, 2018. Mahoney expects to have 21,500 frames on hand at December 31, 2017, and it has a policy of carrying an end-of-month inventory of 100% of the following month's sales plus 50% of the second following month's sales. Direc 1.5 Wage 13.00 continue Print Done
