QU# 1

Kaizen Furniture has the following information in respect to coffee tables for 2011: Production specifications:

	Beginning Target Ending
Direct Materials:	Inventory Inventory
Particle board	20,000 b.f. 18,000 b.f.
Red oak Finished goods	25,000 b.f. 22,000 b.f.
Coffee tables	5,000 units 3,000 units

Revenue expected for 2011 are:

Selling price $392 per table

Units sold 52,000 coffee tables

Each coffee table requires 9.00 b.f. of particle board and 10.00 b.f. of red oak.

Costs expected for 2011 include:

	2010	2011
Particle board (per b.f.)	$ 3.90	$ 4.00
Red oak (per b.f.)	$ 5.80	$ 6.00
Laminating labor (per hour)	$24.00	$25.00
Machining labor (per hour)	$29.00	$30.00

Prepare the following budgets for 2011:

1. Revenues Budget--- (5 marks)
2. Production Budget (in units)---(5 marks)
3. Direct Materials Usage Budget---(20 marks)