Question 1 Marigold Furniture builds high-end hand-made dining tables. Attacus Simmons, the company's owner, has developed the following sales forecast for 2018. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Forecasted sales (tables) 2,512 2,742 2,963 2,090 Because of the time needed to create each table, Marigold maintains an ending Finished Goods Inventory of 20% of the following quarter's budgeted sales. Marigold has been following this inventory policy for several years. The company ended 2017 with 502 tables on hand. The standard cost card for a table is as follows: Total Standard Cost $100 American cherry wood American cherry turning square (legs) Direct labor Variable overhead Fixed overhead Standard Quantity 25 board feet 3 squares 12 DLH 12 DLH 12 DLH Standard Price $4/board foot $10/square $16/DLH $59/DLH $9/DLH 192 708 108 $1,138 Prepare Marigold's production budget for 2018. Assume that the desired ending inventory for 2018 is 572 tables.( 4th Quarter Production Budget 1st Quarter 2nd Quarter 3rd Quarter 2512 2 742 548 593 418 Annual 10307 Beginning inventory 2963 2090 Budgeted unit sales - 2061 2061 Budgeted ending inventory Total units required Budgeted Production Marigold maintains inventory of American cherry wood equal to 10% of the following quarter's production needs. On December 31, 2017, Marigold's physical inventory count showed 5,579 board feet of American cherry. Due to an anticipated price increase in 2019, managers want to have 10,045 board feet of American cherry wood in inventory on December 31, 2018. Prepare Marigold's 2018 direct materials purchases budget for American cherry wood. (Round answers to 0 decimal places, e.g. 5,275.) Direct Materials Purchases Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Beginning inventory Budgeted production Standard price per board feet 9 Production needs Budgeted ending inventory Total DM required Beginning inventory Standard board feet A $ Budgeted purchases cost ALA A Prepare Marigold's direct labor budget for 2018. (Round answers to o decimal places, e.g. 5,275.) Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Budgeted DL cost Standard wage rate Standard DLH per unit Total DLH required Budgeted production LINK TO TEXT LINK TO VIDEO Assume that because of the skill level required to make the tables, Marigold cannot easily hire additional workers to handle peaks in demand. Consequently, the company maintains a steady workforce of 60 employees and guarantees each worker 475 hours per quarter. For any additional time required to complete the scheduled production, these same workers earn 1.5 times their normal hourly rate. Prepare Marigold's direct labor budget for 2018. (Round overtime rate to 1 decimal place, e.g. 52.7 and all other answers to o decimal places, e.g. 5,275.) Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Budgeted DL cost. Click if you would like to Show Work for this question: Open Show Work
