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 Quarter2nd Quarter3rd Quarter4th QuarterForecasted sales (tables)2,5412,7782,9272,276

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 QuantityStandard PriceTotal Standard CostAmerican cherry wood25 board feet$5/board foot$125American cherry turning square (legs)4 squares$9/square36Direct labor12 DLH$16/DLH192Variable overhead12 DLH$58/DLH696Fixed overhead12 DLH$8/DLH96$1,145

Your answer is correct.

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 Budget1^stQuarter

2^ndQuarter

3^rdQuarter

4^thQuarter

Annual

Beginning inventory

Total units required

Budgeted production

Budgeted unit sales

Budgeted ending inventory

Beginning inventory

Budgeted unit sales

Total units required

Budgeted production

Budgeted ending inventory

Budgeted ending inventory

Total units required

Beginning inventory

Budgeted Production

Budgeted unit sales

Beginning inventory

Total units required

Budgeted ending inventory

Budgeted unit sales

Budgeted production

Budgeted unit sales

Budgeted ending inventory

Beginning inventory

Budgeted Production

Total units required

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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 0 decimal places, e.g. 5,275.)

Direct Materials Purchases Budget1^stQuarter

2^ndQuarter

3^rdQuarter

4^thQuarter

Annual

Budgeted purchases

Beginning inventory

Budgeted purchases cost

Budgeted ending inventory

Budgeted production

Standard board feet

Standard price per board feet

Production needs

Total DM required

Budgeted purchases

Total DM required

Beginning inventory

Budgeted ending inventory

Budgeted production

Standard price per board feet

Budgeted purchases cost

Production needs

Standard board feet

Production needs

Standard board feet

Budgeted ending inventory

Beginning inventory

Budgeted purchases

Standard price per board feet

Total DM required

Budgeted production

Budgeted purchases cost

Total DM required

Beginning inventory

Budgeted purchases

Budgeted purchases cost

Standard board feet

Standard price per board feet

Budgeted production

Production needs

Budgeted ending inventory

Production needs

Beginning inventory

Budgeted purchases cost

Budgeted purchases

Budgeted production

Budgeted ending inventory

Standard board feet

Standard price per board feet

Total DM required

Total DM required

Standard board feet

Standard price per board feet

Beginning inventory

Budgeted purchases cost

Budgeted purchases

Budgeted production

Production needs

Budgeted ending inventory

Production needs

Budgeted production

Standard price per board feet

Beginning inventory

Budgeted purchases

Budgeted purchases cost

Standard board feet

Budgeted ending inventory

Total DM required

Budgeted purchases cost

Production needs

Budgeted ending inventory

Standard board feet

Budgeted production

Total DM required

Beginning inventory

Budgeted purchases

Standard price per board feet

$

$

$

$

$

Budgeted ending inventory

Total DM required

Standard price per board feet

Budgeted purchases cost

Budgeted purchases

Budgeted production

Production needs

Beginning inventory

Standard board feet

$

$

$

$

$

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Prepare Swifty's direct labor budget for 2018.(Round answers to 0 decimal places, e.g. 5,275.)

Direct Labor Budget1^stQuarter

2^ndQuarter

3^rdQuarter

4^thQuarter

Annual

Budgeted production

Standard wage rate

Budgeted DL cost

Total DLH required

Standard DLH per unit

Total DLH required

Standard wage rate

Budgeted DL cost

Budgeted production

Standard DLH per unit

Budgeted production

Standard DLH per unit

Total DLH required

Standard wage rate

Budgeted DL cost

Total DLH required

Budgeted DL cost

Standard wage rate

Budgeted production

Standard DLH per unit

$

$

$

$

$

Budgeted production

Standard DLH per unit

Total DLH required

Standard wage rate

Budgeted DL cost

$

$

$

$

$

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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 0 decimal places, e.g. 5,275.)

Direct Labor Budget1^stQuarter

2nd Quarter

3rd Quarter

4^thQuarter

Annual

Overtime rate

DLH needed

Overtime cost

Regular hours cost

DLH available

Overtime hours

Budgeted DL cost

Overtime hours

Regular hours cost

Overtime cost

Overtime rate

Budgeted DL cost

DLH available

DLH needed

Regular hours cost

Budgeted DL cost

Overtime cost

DLH needed

Overtime rate

DLH available

Overtime hours

Budgeted DL cost

Overtime hours

Overtime rate

DLH available

Overtime cost

DLH needed

Regular hours cost

$

$

$

$

$

Overtime cost

Regular hours cost

Overtime rate

Overtime hours

Budgeted DL cost

DLH needed

DLH available

$

$

$

$

$

Regular hours cost

DLH available

Overtime hours

Overtime rate

Overtime cost

Budgeted DL cost

DLH needed

Overtime cost

DLH available

Regular hours cost

Budgeted DL cost

Overtime hours

DLH needed

Overtime rate

$

$

$

$

$