Problem 5-32 - Part B

Problem 5-32 (Part Level Submission) Sandoval Furniture builds high-end hand-made dining tables. Mackenzie Sandoval, the company's owner, has developed the following sales forecast for 2015. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Forecasted sales (tables) 2,721 1,697 2,568 2,925 Because of the time needed to create each table, Sandoval maintains an ending Finished Goods Inventory of 20 percent of the following quarter's budgeted sales. Sandoval has been following this inventory policy for several years. The company ended 2014 with 514 tables on hand. The standard cost card for a table is as follows: Total standard Cost Standard Quantity Standard Price 25 board feet American cherry wood $4/board foot $100 American cherry turning square (legs) 3 squares $9/square 27 $14/DLH Direct labor 12 DLH 168 Variable overhead 12 DLH $60/DLH 720 s9/DLH 108 Fixed overhead 12 DLH $1,123