More info Variable manufacturing overhead is $9 per direct manufacturing labor-hour. There are also $55,000 in fixed manufacturing overhead costs budgeted for January 2021. Skubas combines both variable and fixed manufacturing overhead into a single rate based on direct manufacturing labor-hours. Variable marketing costs are allocated at the rate of $280 per sales visit. The marketing plan calls for 37 sales visits during January 2021. Finally, there are $34,000 in fixed operating (nonmanufacturing) costs budgeted for January 2021. Print Done holders Equity: = Homework: Chapter 6 - Problem 6-43 Question 1, P6-43 (similar to) Part 7 of 7 HW Score: 50%, 50 of 100 points Points: 50 of 100 Save Skubas, Inc., manufactures and sells snowboards. Skubas manufactures a single model, the Pipex. In late 2020, Skubas's management accountant gathered the following data to prepare budgets for January 2021: (Click the icon to view the budgeted balances and additional information pertaining to the cash budget.) (Click the icon to view the materials and labor requirements, the direct materials inventories, and additional inventory information.) (Click the icon to view the following selected January 2021 budgets: Revenue, Direct material purchases, Direct .. accounts receivable (c) inventory (d) accounts payable and (e) plugging in the balance for stockholders' equity. Skubas, Inc. Budgeted Balance Sheet January 31, 2021 Assets: 7 Total Liabilities and Stockholders' Equity: Total 1 page Budgeted balances at January 31, 2021 are as follows: Cash ? Accounts receivable ? ? $ 853,000 Inventory Property, plant, and equipment (net) Accounts payable Long-term liabilities Stockholders' equity ? 181,000 ? 13,000 Selected budgeted information for December 2020 follows: Cash balance, December 31, 2020 $ Budgeted sales Budgeted materials purchases 1,730,000 640,000 Customer invoices are payable within 30 days. From past experience, Skubas's accountant projects 35% of invoices will be collected in the month invoiced, and 65% will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 45% of direct materials purchases paid during the month of the purchase, and 55% paid in the month following purchase. Fixed manufacturing overhead costs include $31,000 of depreciation costs and fixed operating (nonmanufacturing) overhead costs include $15,000 of depreciation costs. Direct manufacturing labor and the remaining manufacturing and operating (nonmanufacturing) overhead costs are paid monthly. All property, plant, and equipment acquired during January 2021 were purchased on credit and did not entail any outflow of cash. There were no borrowings or repayments with respect to long-term liabilities in January 2021. On December 15, 2020, Skubas's board of directors voted to pay a $135,000 dividend to stockholders on January 31, 2021 puye Materials and Labor Requirements page Materials and Labor Requirements Direct materials Wood Fiberglass Direct manufacturing labor 10 board feet (b.f.) per snowboard 8 yards per snowboard 5 hours per snowboard Skubas' CEO expects to sell 2,000 snowboards during January 2021 at an estimated retail price of $650 per board. Further, the CEO expects 2021 beginning inventory of 300 snowboards and would like to end January 2021 with 500 snowboards in stock. Direct Materials Inventories Beginning Inventory Ending Inventory January January 2021 31, 2021 Wood 2,030 b.f. 1,530 b.f. Fiberglass 1,030 yards 2,030 yards Other data include: 2020 Unit Price 2021 Unit Price Wood $ 31.00 per b.f. $ 33.00 per b.f. 8.00 per yard $ 7.00 per yard $ Fiberglass Direct manufacturing labor $ 27.00 per hour $ 28.00 per hour The inventoriable unit cost for ending finished-goods inventory on December 31, 2020, is $300.00. Assume Skubas uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations. Units Selling price Total revenues 2,000 $ 650 $ 1,300,000 Snowboards Total Direct Materials Purchases Budget For January 2021 Materials Wood Fiberglass Physical Units Budget To be used in production 22,000 b.f. 17,600 yards Add target ending inventory 1,530 b.f. 2,030 yards Total requirement 23,530 b.f. 19,630 yards Deduct beginning inventory 2,030 b.f. 21,500 Purchases to be made 18,600 b.f. yards Cost Budget $ 709,500 Purchases $ 148,800 1,030 yards $ 858,300 Direct Manufacturing Labor Costs Budget For January 2021 Output Units DMLH Total Hourly Wage Rate Hours Total Produced 2,200 per Unit 5 Snowboards 11,000 $ 28 $ 308,000 Total labor hours x = Variable manufacturing overhead rate 9 Variable manufacturing overhead costs 99,000 11,000 = $ Ending Inventories Budget For January 2021 Quantity Cost per unit Total Direct materials Wood 1,530 33 $ 50,490 Fiberglass 2,030 8 16,240 Finished goods Snowboard 500 $ TA 604 302,000 $ Total ending inventory 368,730