Answered step by step
Verified Expert Solution
Question
1 Approved Answer
note: Provide explanations to your answers. Please circle your final answer to each question. Q.4) (22 points) The ABC Corporation manufactures and sells two products:
note: Provide explanations to your answers. Please circle your final answer to each question.
Q.4) (22 points) The ABC Corporation manufactures and sells two products: T1 and T2. 20xx budget for the company is given below: Projected Sales Units Price TI 60,000 $165 T2 40,000 S250 Inventories in Units January 1, 20XX December 31, 20XX 20,000 25,000 8,000 9,000 TI T2 The following direct materials are used in the two products: Amount used per unit Direct Material Unit TI T2 A pound 4 5 B pound 2 3 cach 0 1 Anticipated Inventories Direct Material Purchase Price January 1, 2012 December 31, 2012 S12 32,000 lb. 36,000 lb. B $5 29,000 lb. 32,000 lb. $3 6,000 units 7,000 units Projected direct manufacturing labor requirements and rates for 20XX are as follows: Hours per Unit Rate per Hour TI 2 S12 T23 $16 Manufacturing overhead is allocated at the rate of $20 per direct manufacturing labor-hour. Marketing and distribution costs are projected to be $100,000 and $ 300,000, respectively. a. What is the total expected revenue in dollars) for 20XX? b. What is the expected production level (in units) both for TI and T2? c. What is the total direct material purchases in dollars) for each type of direct material? d. What is the total direct manufacturing labor cost (in dollars)? e. What is the total overhead cost in dollars)? f. What is the total cost of goods sold in dollars)? g. What is the total expected operating income (in dollars) for 20XXStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started