please solve direct labor hours red boxes and the predetermined overhead rate for the quarter red box

ssignment PRINTER VERSION BACK NEXT Question 2 Waterways Corporation is preparting its budget for the coming year, 2017. The first step is to plan for the first quarter of t from the managers that corning year. Waterways gathered the following information les Unit sales for November 2016 Unit sales for December 2016 Expected unit sales for January 2017 Expected unit sales for February 2017 Expected unit sales for March 2017 Expected unit sales for Expected unit sales for May 2017 Unit selling price 112,500 102,100 113,000 112,500 116,000 125,000 137,500 $12 April 2017 waterways likes to keep 10% o the next month's unt sales in ending inventory. All sales are on account. 85% of the Accounts Rece able are collected in the month of sale, and is% the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2016, totaled $183,780. Direct Materials Item Metal Amount Used per Unit 1 lb 58c per lb. Inventory, Dec. 31 5,177.5 lbs 3,883.125 Ibs 1,294.375 lbs 10,355.0 lbs Plastic12 oz @ 6 per oz Rubber 4 oz@ 5t per oz 2 lbs per unit Metal, plastic, and rubber together are 75 per pound per unit. 649 4/14/4 pRINTER VERSION | | 4 BACK Metal, plastic, and rubber together are 75 per pound per unit. waterways likes to keep 5% of the materials needed or the next morthin its n nventory, payment ir matera is made within s sas on s ad m h ra d m ss in the month of purchase month of unit, and 50% is paid in the month after purchase Accounts Payable on December 3,- i,totaled $120,5 s Ra Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $8 per hour. Matera som December a 20 a Manufacturing Overhead Indirect materials Indirect labor Utilities Maintenano Salaries Depreciation Property taxes$2,675 Insurance Maintenance 304 per labor hour 500 per labor hour 454 per labor hour 254 per labor hour $42,000 $16,800 per month per month per month per month per month $1,200 $1,300 Selling and Administrative Variable selling and administrative cost per unit is $1.60 Advertising Insurance Salaries Depreciation $15,000 a month $1,400 a mont $72,000 a month $2,500 a month @ e gjalle lilipall A.Mxalllil ignment Salaries 'BACK NEXT $72,000 a month $2,500 a month $3,000 a month Depreciation Other fixed costs Other Information The Cash balance on December 31, 2016, totaled $100,500, but management has decided it would like to r Dividends are paid each month at the rate of $2.50 per share for 5,000 shares outstanding. The company has an open line of credit with Romney's Bank. T requires borrowing to be in $1,000 increments at 8% interest, waterways borrows on the first dayof the purchase is planned for February 8 toef share for s.o00 shares outsoandhe a rst y of the month and repays on aintain a cash balance of at least $800,000 beginning on January 3 month and repays on the last day of the month. A SS&,000 equipment l Your answer is correct For the first quarter of 2017, prepare a sales budget WATERWAYS CORPORATION Sales Budget For the First Quarter of 2017 First Quarter February January March Quarter 113000 112500 116000 341500 Unit selling price 12 12 12 12 Total sales 1356000 1350000 1392000 4098000 PRINTE Total sales 1350000$ 1392000$ s 1356000 4098000 SHOW ANSWER Attempts: 1 of 5 used (b) Your answer is corect For the first quarter of 2017, prepare a production budget. WATERWAYS CORPORATION Production Budget For the First Quarter of 2017 First Quarter January February March Quarter 341500 Expected Unit Sales Add l Desired Ending Finished Goods Units Total Required Units Less Beginning Finished Goods Units 113000 112500 1 _list] li_ 11600) 12500) 12500 124250 124100 128500 354000 11300 11300 uired Un PRINTER 124 124 285 Less 1 |Beginning Finished Goods Units 11300 11250 11600 11300 Required Production Units 112950 112850 116900 342 SHOW SOLUTION SHOW ANSWER Attempts: 2 of 5 used (c) [v ] Your answer is correct. For the first quarter of 2017, prepare a direct materials budget. (Round cost per pound to 2 decimal places, e.g. 0.25 and all other answers to o WATERWAYS CORPORATION Direct Materials Budget For the First Quarter of 2017 First Quarter January February March Quarter Units to be Produced 112950 112850 116900 342700 Direct Materials Per Unit Direct Materials Per Unit 2 2 Total Pounds Needed for Production 225900 225700 233800 685 Add Desired Ending Direct Materials (lbs) V Total Materials Required Less . Beginning Direct Materials (Ibs) 11285 11690 12625 12625 237185 246425 698025 11295 11285 11690 11295 Direct Materials Purchases 225890 226105 234735 686730 Cost Per Pound 0.75 0.75 $ 0.75 0.75 Total Cost of Direct Materials Purchases 169418 169579 176051 515048 SHOW SOLUTION SHOW ANSWER Attempts: 2 of 5 used (d) Your answer is correct. WATERWAYS CORPORATION Direct Labor Budget For the First Quarter of 2017 First Quarter January February March Quarter Units to be Produced 112950 112850 116900 342700 Direct Labor Time (Hours) Per Unit 0.2 0.2 0.2 0.2 Total Required Direct Labor Hours V 22590 22570 23380 68540 Direct Labor Cost Per Hour 8 8 8 8 Total Direct Labor Cost 180720$ 1805601 187040 548320 SHOW ANSWER Attempts: (e) Your answer is partially correct. Try again. For the first quarter of 2017, prepare a manufacturing overhead budget. (Round overhead rate to 2 decimal places, e-g. 5.25 and all other answers to 2,520. List Variable Costs first.) WATERWAYS CORPORATION Manufacturing Overhead Budget For the First Quarter of 2017 First Quarter January February March Quarter Variable Costs Indirect Materials 70141 $ 6777 6771 20562 Indirect Labor 11295 11285 11690 34270 Utilities 10166 10157 10521 30843 Maintenance 5648 5643 5845 17135 Total Variable Cost 33885 33855 35070 102810 Fixed Costs Salaries 42000 42000 126000 Depreciation 16800 I 50400 16800 PRINTER VER Fixed Costs 42000 42000 42000 126000 16800 16800 50400 Property Taxes 2675 2675 2675 8025 Insurance 1200 1200 1200 3600N Maintenance 1300 1300 1300 3900 Total Fixed Costs 63975 63975 63975 191925 Total Manufacturing Overhead 97860 97830 99045 294735 Direct Labor Hours Predetermined overhead rate for the quarter SAVE FOR LATER Attempts: 4 of 5 used