Question list

Question $1$

Slaggs, Inc., manufactures and sells snowboards. Slaggs manufactures a single model, the

Pipex. In late $2020,$ Slaggs's management accountant gathered the following data to

prepare budgets for January $2021$:

$($Click the icon to view the materials and labor requirements$)$

$($Click the icon to view the additional information.$)$

$($Click the icon to view the direct materials inventories$)$

$($Click the icon to view the additional information.$)$

Requirement $1.$ Prepare the January $2021$ revenues budget $($in dollars$).$

Revenue Budget

For January $2021$

Units Selling price Total revenues

More info

Variable manufacturing overhead is $$20$ per direct manufacturing labor$-$hour. There are also $$28,770$

in fixed manufacturing overhead costs budgeted for January $2021.$ Slaggs combines both variable

and fixed manufacturing overhead into a single rate based on direct manufacturing labor$-$hours.

Variable marketing costs are allocated at the rate of $$350$ per sales visit. The marketing plan calls for

$44$ sales visits during January $2021.$ Finally, there are $$41,000$ in fixed operating $($nonmanufacturing$)$

costs budgeted for January $2021.$

More info

Slaggs's CEO expects to sell $3,910$ snowboards during January $2021$ at an estimated retail price of

$$1,320$ per board. Further, the CEO expects $2021$ beginning inventory of $700$ snowboards and would

like to end January $2021$ with $900$ snowboards in stock.