Question
Question 1 Preparing an Ending Finished Goods Inventory Budget Andrews Company manufactures a line of office chairs. Each chair takes $12 of direct materials and
Question 1
Preparing an Ending Finished Goods Inventory Budget
Andrews Company manufactures a line of office chairs. Each chair takes $12 of direct materials and uses 1.9 direct labor hours at $14 per direct labor hour. The variable overhead rate is $1.30 per direct labor hour and the fixed overhead rate is $1.30 per direct labor hour. Andrews expects to have 650 chairs in ending inventory. There is no beginning inventory of office chairs.
Required:
1. Calculate the unit product cost. (Note: Round to the nearest cent.) $
2. Calculate the cost of budgeted ending inventory. (Note: Round to the nearest dollar.) $
Question 2
Preparing a Selling and Administrative Expenses Budget
Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $18200000. There is a 5% commission on sales. In addition, fixed expenses of the sales and administrative offices include the following:
Salaries | $ 960,000 |
Utilities | 365,000 |
Office space | 230,000 |
Advertising | 1,200,000 |
Required:
Prepare a selling and administrative expenses budget for Fazel Company for the coming year.
Fazel Company | ||
Selling and Administrative Expenses Budget | ||
For the Coming Year | ||
Variable selling expenses | $ | |
Fixed expenses: | ||
Salaries | $ | |
Utilities | ||
Office space | ||
Advertising | ||
Total fixed expenses | ||
Total selling and administrative expenses | $ |
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