Redford Corporation -Manufacturing Budget

Redford Corporation, a maker of high-strength umbrellas, is preparing a preliminary manufacturing budget for the year 2019. They have gathered the following estimate data from various teams:

Additional information given:

-Roughly 5% of metal parts are damaged or defective and are discarded as wastage

-Each umbrella uses 1.5 sq. yards of high-strength fabric

-Roughly 10% of the initial fabric quantity is not usable in the umbrellas due to the cutting process, but -20% of the value of this fabric is recovered by selling the unused pieces to a dealer

-The current process uses roughly 20 hours of direct labor (cutting and assembly line) per batch of umbrellas

-Each batch has 200 umbrellas

Q1. Prepare a Manufacturing Cost Budget for 2019 by quarter, assuming flat activity and equal-length quarters (do not adjust for days)

Q2. Prepare a High Case budget alternative assuming that production ramps up 50% in the second half. In this scenario, assume fixed costs increase by $60,000/yr due to need for additional storage space, while variable cost structure is unchanged

Production units Materials - metal rodsfclasps Materials - high-strength fabric Materials - Resin handles Direct Labor-Cuand Assembly Line$ 28.00 Per hour Packing&Inspection Costs(variable 300.00 Per beatch Factory fixed costs 400,0CO $120 Per sa yord $ 0.25 peruni 300,000 Py Yeor $ 300,CCO Per Year