Session 17, Budgeting Practice Problem (Hitech Plastics) - Template, v(9.0).xlsx.pdf - Adobe Acrobat Pro DC (32-bit) X File Edit View Sign Window Help Home Tools Stevenson, ... 000624766_... Edward Bloc... SATStudent... Alexandrasc... Quiz 2 AQ... Session 17, ... X ... (? 1 /4 (+ 67.9% Search tools Hitech Plastics makes injected molded high value plastics components for automobiles, aircraft, and even for the space shuttle. They purchase plastic pellets, heat them to a high temperature and use a heavy duty injection molding machine to force the plastic into molds. Once the Create PDF molded components have cooled, they are removed from the molds, trimmed and deburred, and sent to final inspection. Combine Files Sales for the first quarter have been projected to be as follows: Jan. Feb Ma Total Apr Sales Units 40,000 60,000 30,000 130,000 70,000 Edit PDF Average Selling Price $ 18.00 $ 16.00 $ 19.00 $ 15.00 Production for the components is based on the following manufacturing practices at Hitech Plastics: Le Fill & Sign 1) Finished Goods Inventory is set at next month sales as most of Hitech's customers use 2.5 lb/unit $0.80/lb keep enough for 60% just-in-time manufacturing. FG Inventory at the start of January is 40,000 units. Assume April Export PDF production is forecasted at 70,000 units. 2) Raw material is purchased from several suppliers as it is a commodity and prices are always Organize Pages reacting to competition; each finished unit uses on average 2.5 pounds of plastic pellets at a cost of $0.80 per pound. Manufacturing keeps enough raw material at each month end for 60% of next month's production. Raw material inventory at the start of January is 120,000 La Send for Comme.. pounds. Hitech pays its suppliers in 30 days. At the end of December, Hitech owed its suppliers $96,000 3 ) Comment Each unit takes on average 15 minutes to remove the components from the molds and do the necessary trim and debur work. Workers are paid $15 per hour including fringe benefits. In addition, workers have paid, but non-productive time of an additional 6 minutes, for breaks, Scan & OCR training, equip downtime, etc. Non-productive time amounts to 40% of their productive time. Protect Your current plan is Adobe Export PDFSession 17, Budgeting Practice Problem (Hitech Plastics) - Template, v(9.0).xlsx.pdf - Adobe Acrobat Pro DC (32-bit) X File Edit View Sign Window Help Home Tools Stevenson, ... 000624766_... Edward Bloc... SATStudent... Alexandrasc... Quiz 2 AQ... Session 17, ... X ... (? 2 / 4 (+ 67.9% Search tools 4) Manufacturing Overhead is based on activity analysis. There are three major activities as follows: Cost Driver Create PDF Activity Cost Driver Rate Setup & material moves # production batches $800 per batch Inspections # inspections $2 per unit inspected Combine Files Production scheduling # units $0.90 per unit 5) In addition, there is $75,000 per month of management OH expense that cannot be assigned Edit PDF to activities. Product is made in batches of 1,000 units; 20% of units are inspected as Hitech has had quality issues. Manufacturing OH costs include depreciation expense of $30,000 per month spread across activities/ management. Hitech uses the average cost per unit for the Le Fill & Sign quarter to calculate Cost of Goods Sold. Export PDF Group Assignment: To be completed usting next tab: Hitech Template All Groups should answer all 9 questions. Individual Groups will be asked to present answers to specific questions ED Organize Pages 1. Prepare a production budget for January, February and March and for the Quarter. 2. Prepare a raw material purchases budget for January, February and March and for the Quarter. La Send for Comme.. 3. Prepare a direct labor budget for January, February and March and for the Quarter. 4. Prepare a manufacturing OH budget for January, February and March and for the Quarter. 5. Calculate total product cost for January, February and March and for the Quarter. Comment 6. Prepare a manufacturing cash outflow budget for January, February and March and for the Quarter. 7. Prepare an income statement to Gross Margin for January, February and March and for the Quarter. 8. Assume January actual sales were 42,000 units at $17 per unit. Use variance analysis to explain the Scan & OCR the difference between budget and actual sales 9. Based on your projections, what would you recommend to Hitech Plastics management? Protect Your current plan is Adobe Export PDF