• Rachel Janet is preparing the 2024 budget for one of BestKayaks roto-moulded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2024.
• 

SB Selling price is $554. For promotion activities, BestKayaks gives a 10% discount on selling price in September and December. All sales are on credit. The company expects that it can collect 20% of sales in the month of sales, 50% of sales in the next month, and the remaining 30% in second month.

Sales in November 2023 totaled to 250 units at the selling price of $554 and in December 2023 to 1000 units at the 10% discount selling price.

INV BestKayaks policy is to have finished goods ending inventory in a month equal to 20% of the next months anticipated sales. This policy also applied to ending inventory of finished goods on December 31, 2023.

Dm Preliminary sales projections for 2025 are 550 units for January and 420 for February.

Production of each kayak requires 41 kg of polyethylene powder and one finishing kit (rope, seat, hardware, etc.). Company policy is that the ending inventory of polyethylene powder should be 24% of the amount needed for production in the next month. Further, BestKayaks policy is to always keep 49 finishing kits as ending inventory. This means for example that the ending inventory of finishing kits is 49 units on December 31, 2023. The polyethylene powder used in these kayaks cost $1.2 per kilogram, and the finishing kits cost $162 each.

DL Production of a single kayak requires 1 hours of time by more experienced, type I employees and 2 hours of finishing time by type II employees. Direct labour costs for type I employees are $15 per hour and $10 per hour for type II employees.

BestKayak expects variable manufacturing overhead costs to fluctuate with the production volume based on the following rates per type II employees direct labour hours:

• Indirect materials: $1 per type II employees direct labour hour
• Indirect labour: $1.40 per type II employees direct labour hour
• Utilities: $0.50 per type II employees direct labour hour
• Maintenance: $0.20 per type II employees direct labour hour

In addition, BestKayak expects the following fixed manufacturing overhead to occur each month:

• Supervisory salaries: $19464
• Depreciation: $3927
• Property taxes and insurance: $8414
• Maintenance: $5534
• Supervisory salaries: $19464
• Depreciation: $3927
• Property taxes and insurance: $8414
• Maintenance: $5534

The Company uses machine hours of type II employees to allocate manufacturing overhead. The predetermined manufacturing overhead is calculated based on annual estimates.

Variable selling and administrative expenses for this line are expected to be 3% of sales for sales commissions and $10 per unit for freight out. In addition, monthly fixed selling and administrative expenses are estimated to be as follows:

• Advertising: $7500
• Sales salaries: $17000
• Office salaries: $7000
• Depreciation: $722
• Property taxes and insurance: $1000

\begin{tabular}{|l|l|l|l|l|l|l|l|l|l|l|l|} \hline Jan & Feb & Mar & Apr & May & Jun & Jul & Aug & Sep & Oct & Nov & Dec \\ \hline 416 & 476 & 728 & 867 & 928 & 1157 & 1307 & 1100 & 560 & 413 & 328 & 1006 \\ \hline \end{tabular} Q11: How many Type II Direct Labour hours are required in July 2024? Q12: What are the total budgeted variable manufacturing overhead costs in June 2024? Q13: What are the total budgeted fixed manufacturing overhead costs for the year 2024? Q14: What are the total budgeted variable selling, general, and administrative costs for July 2024? Q15: What are the total budgeted fixed selling, general, and administrative costs for the year 2024