Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

please answer this question as early as possible by showing all calculations and steps U Balance Corporation manufactures balance bikes for toddlers. Each bike requires

image text in transcribed

image text in transcribed

please answer this question as early as possible by showing all calculations and steps

U Balance Corporation manufactures balance bikes for toddlers. Each bike requires 2 tires at a cost of $4.00 per tire, 0.5 direct labor hours and 3 machine hours. Production line works are paid $13.00 per hour. The company has estimated total manufacturing overhead of $400,000 for the year and allocates overhead on the basis of machine hours. Estimated machine hours total 80,000 for the period. The company records $5,000 in depreciation expense each month. Production peaks in November as the company prepares for the gift giving season that occurs in December. The company has planned to produce the following units for the last four months of the year and January of the next year: September 1,300 October 1,500 November 3,000 December 12,000 January 1500 Desired ending inventory of the tires used on the balance bikes is 25% of the next month's production needs. REQUIRED: 1. Create a monthly direct materials budget for the fourth quarter of the year (Oct. Nov, Dec) for tires used on the balance bikes. At the bottom of the budget, indicate the total cost to purchase the tires. 2. Create a monthly direct labor budget for the fourth quarter of the year. 3. Calculate the predetermined overhead rate for manufacturing overhead - thomas TASUT January e next year. September 1,300 October 1,500 November 3,000 December 12,000 January 500 Desired ending inventory of the tires used on the balance bikes is 25% of the next month's production needs. REQUIRED: 1. Create a monthly direct materials budget for the fourth quarter of the year (Oct, Nov, Dec) for tires used on the balance bikes. At the bottom of the budget, indicate the total cost to purchase the tires. 2. Create a monthly direct labor budget for the fourth quarter of the year. 3. Calculate the predetermined overhead rate for manufacturing overhead. 4. Prepare a monthly manufacturing overhead budget for the fourth quarter of the year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems

Authors: Vernon Richardson, Chengyee Chang, Rod Smith

2nd edition

978-1260153156

Students also viewed these Accounting questions