Question 1 Swifty Furniture builds high-end hand-made dining tables. Attacus Simmons, the company's owner, has developed the following sales forecast for 2018. 1st Quarter 2,541 2nd Quarter 2,778 3rd Quarter 2,927 4th Quarter 2,276 Forecasted sales (tables) Because of the time needed to create each table, Swifty maintains an ending Finished Goods Inventory of 20% of the following quarter's budgeted sales. Swifty has been following this inventory policy for several years. The company ended 2017 with 508 tables on hand. The standard cost card for a table is as follows: Standard Quantity 25 board feet Total Standard Cost $125 36 American cherry wood American cherry turning square (legs) Direct labor Variable overhead Fixed overhead Standard Price $5/board foot $9/square $16/DLH $58/DLH $8/DLH 4 squares 12 DLH 12 DLH 12 DLH 192 696 96 $1,145 Your answer is partially correct. Try again. Prepare Swifty's production budget for 2018. Assume that the desired ending inventory for 2018 is 519 tables. (Round answers to 0 decimal places, e.g. 5,275.) Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 22767 Annual 10522 Budgeted unit sales AT 2541 2778T 2927 Budgeted ending inventory 4 25 25 251 63525 25T 69450 1 Total units required | 1 63525 5690 69450 73173i 73175 56900 263050 Beginning inventory * Budgeted Production Budgeted Production L L L L Swifty maintains inventory of American cherry wood equal to 10% of the following quarter's production needs. On December 31, 2017, Swifty's physical inventory count showed 5,555 board feet of American cherry. Due to an anticipated price increase in 2019, managers want to have 10,091 board feet of American cherry wood in inventory on December 31, 2018. Prepare Swifty's 2018 direct materials purchases budget for American cherry wood. (Round answers to o decimal places, e.g. 5,275.) Direct Materials Purchases Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual 000IDIIN LOD0000000 Jollllllll 000000000 Prepare Swifty's direct labor budget for 2018. (Round answers to 0 decimal places, e.g. 5,275.) Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual XP X X X Assume that because of the skill level required to make the tables, Swifty cannot easily hire additional workers to handle peaks in demand. Consequently, the company maintains a steady workforce of 60 employees and guarantees each worker 500 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 Swifty'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 X X 1000D X Click if you would like to Show Work for this question: Open Show Work
