Please answer both, I only have 1 question left and need the answer to both. Im stuck :/ 1 2 Micro Products Inc. has developed a very powerful electronic calculator. Each calculator The direct labour budget of Small Corporation for the upcoming fiscal year contains the requires three small chips that cost $3 each and are purchased from an overseas following details concerning budgeted direct labour-hours: supplier. Micro Products has prepared a production budget for the calculator by quarters First Quarter for year 2 and for the first quarter of year 3, as shown below: Second Third Fourth Quarter Quarter Quarter Budgeted direct labour-hours 5,400 5.200 5,600 5,800 Year 2 Year 3 First Second Third Fourth First Budgeted production, in 78.000 108,000 168,000 calculators 118.000 98.000 The company's variable manufacturing overhead rate is $1.95 per direct labour-hour, and the company's fixed manufacturing overhead is $39.000 per quarter. The only non-cash item included in the fixed manufacturing overhead is depreciation, which is $19.000 per quarter Year $ 0 0 0 0 0 0 0 0 Overhead The chip used in production of the calculator is sometimes hard to get, so it is required: necessary to carry large inventories as a precaution against stock-outs. For this reason. 1. Prepare the company's manufacturing overhead budget for the upcoming fiscal year. the inventory of chips at the end of a quarter must be equal to 20% of the following quarter's production needs. A total of 54,000 chips will be on hand to start the first quarter of year 2 SMALL CORPORATION Manufacturing Overhead Budget Required: First Quarter Second Quarter Third Quarter Fourth Quarter Prepare a direct materials purchases budget for chips, by quarter and in total, for year 2. Variable manufacturing overhead At the bottom of your budget, show the dollar amount of purchases for each quarter and Fixed manufacturing overhead for the year in total. Total manufacturing overhead Less depreciation Micro Products, Inc. Cash disbursements for manufacturing Direct Materials Budget - Year 2 Quarter Compute the company's manufacturing overhead rate (including both variable and First Second Third Fourth Year 2. fixed manufacturing overhead) for the upcoming fiscal year. (Round your answer to 2 decimal places.) Required production in calculators 78,000 108,000 168,000 118,000 472,000 Number of chips per calculator 3 3 3 3 Predetermined overhead rate for the year Production needs-chips 234.000 324,000 504,000 354,000 1,416,000 Add: Ending inventory Total needs 234,000 324,000 504,000 354,000 1,416,000 Add: Beginning inventory Required purchases-chips Total cost of purchases 3
