Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
pls do all 3 parts Trevor Compony manufactures modei aiplane kits and projects productoon it 600,120,250, and 750 kits for the next four quarters. Propare
pls do all 3 parts Trevor Compony manufactures modei aiplane kits and projects productoon it 600,120,250, and 750 kits for the next four quarters. Propare Trevor Company's direct materiabs budget, firect labor budget, and manufacturing overhead budget for the year. Round the direct labor hours needed for prodiction, budgeted overhead costs, and predetermined overhead alocation rate to two decimal places. Round othes amounts to the nearest wholo number, Manufacturing Information Direct materials are three ounces of plastic per kit and the plastic costs $4 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 890 ounces, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Trevor Company desires a balance of 260 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.25 hours of direct labor at an average cost of $35 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.80 per kit, and fixed overhead is $145 per quarter. Begin by preparing Trevor Company's direct materials budget. Trevor Compony manufactures modei aiplane kits and projects productoon it 600,120,250, and 750 kits for the next four quarters. Propare Trevor Company's direct materiabs budget, firect labor budget, and manufacturing overhead budget for the year. Round the direct labor hours needed for prodiction, budgeted overhead costs, and predetermined overhead alocation rate to two decimal places. Round othes amounts to the nearest wholo number, Manufacturing Information Direct materials are three ounces of plastic per kit and the plastic costs $4 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 890 ounces, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Trevor Company desires a balance of 260 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.25 hours of direct labor at an average cost of $35 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.80 per kit, and fixed overhead is $145 per quarter. Begin by preparing Trevor Company's direct materials budget
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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