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please answer the whole thing. ive posted questions for part A-D ^on seprate questions Fillmore Company has developed the following standards related to the production
please answer the whole thing. ive posted questions for part A-D
^on seprate questions
Fillmore Company has developed the following standards related to the production of their finished units: Direct Materials (6 pounds per unit @ $5 per pound) Direct Labor (9 hours per unit @ $22 per direct labor hour) Variable Overhead (4 machine hours @ $7 per machine hour) Fixed overhead costs are estimated at $542,000 per quarter. Selling and administrative costs are expected to be $3 per unit variable and $450,000 fixed per quarter. The expected selling price is $360 per unit. The following sales forecast is available for the year 2020: 1st Quarter 14,000 units; 2nd Quarter 16,000 units; 3rd Quarter 19,000 units; and the 4th Quarter 18,000 units. The expected sales in the 1st Quarter of the year 2021 are 17,000 units. Management policy is to maintain a finished goods inventory equal to 25% of the next quarter's sales and a raw materials inventory equal to 10% of the next quarter's material production requirements. The beginning inventories of the 1st quarter of the year 2020 are expected to meet these same requirements, Part B Compute the following amounts: 1. What is the budgeted production for 2020 for the YEAR? (1 pt) 2. What total amount of machine hours will be needed to produce the annual production? (1 pt) 3. What are the total budgeted fixed overhead costs for the year 2020? (1 pt) 4. Based on an activity measure in machine hours, what is the pre- determined fixed overhead rate for 2020? (2 pts) 5. What is the total standard cost to produce ONE unit? (4 pts) Step by Step Solution
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