Spaworks Inc. makes hot tubs for residential use. The hot tubs, which consist of a fibreglass...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Spaworks Inc. makes hot tubs for residential use. The hot tubs, which consist of a fibreglass finish and proprietary insulation glass, are sold with an all-weather pump and heater unit for $2,750. The company is planning its annual budget for the coming year ending October 31, 2020, and the controller has provided the following data: Sales F2020 15,000 tubs November sales: 1,800 tubs; December sales: 1,500 tubs F2021 Selling price per tub: $2,750.00 Materials and labour requirements (per tub) Direct materials Insulation Fibreglass Pumps Direct labour 5.0 kg 10.4 sq. metre (m2) 1 unit 8 hours Inventories Qty Units Cost Beginning: Finished goods 550 unit $1,400.00 Direct materials Insulation 2,195 kg m2 $15.00 Fibreglass Pumps 6,500 $12.00 $850.00 550 unit Ending finished goods inventory is 25% of next month's sales. Ending direct materials inventories are 20% of next month's production needs. Direct materials inventory is expected to change to the following: $ 16.00 per kg $ 13.00 per square metre $900.00 per unit Insulation Fibreglass Pumps Other rates Direct labour wage rate Variable manufacturing overhead Variable marketing costs Number of customers $22.50 per hour $26.00 per direct labour hour $250 per customer 15,000 Other costs Fixed manufacturing overhead Fixed non-manufacturing costs $319,275 $1,250,000 Required: Prepare the following schedules of the master budget for the year ended October 31, 2020. Assume that the company uses first in, first out (FIFO) for inventory costs: a) Revenue budget b) Production budget c) Direct materials usage budget d) Direct materials purchases budget Spaworks Inc. makes hot tubs for residential use. The hot tubs, which consist of a fibreglass finish and proprietary insulation glass, are sold with an all-weather pump and heater unit for $2,750. The company is planning its annual budget for the coming year ending October 31, 2020, and the controller has provided the following data: Sales F2020 15,000 tubs November sales: 1,800 tubs; December sales: 1,500 tubs F2021 Selling price per tub: $2,750.00 Materials and labour requirements (per tub) Direct materials Insulation Fibreglass Pumps Direct labour 5.0 kg 10.4 sq. metre (m2) 1 unit 8 hours Inventories Qty Units Cost Beginning: Finished goods 550 unit $1,400.00 Direct materials Insulation 2,195 kg m2 $15.00 Fibreglass Pumps 6,500 $12.00 $850.00 550 unit Ending finished goods inventory is 25% of next month's sales. Ending direct materials inventories are 20% of next month's production needs. Direct materials inventory is expected to change to the following: $ 16.00 per kg $ 13.00 per square metre $900.00 per unit Insulation Fibreglass Pumps Other rates Direct labour wage rate Variable manufacturing overhead Variable marketing costs Number of customers $22.50 per hour $26.00 per direct labour hour $250 per customer 15,000 Other costs Fixed manufacturing overhead Fixed non-manufacturing costs $319,275 $1,250,000 Required: Prepare the following schedules of the master budget for the year ended October 31, 2020. Assume that the company uses first in, first out (FIFO) for inventory costs: a) Revenue budget b) Production budget c) Direct materials usage budget d) Direct materials purchases budget
Expert Answer:
Answer rating: 100% (QA)
Revenue budget Expected sales in units 15000 x Selling price per tube 27... View the full answer
Posted Date:
Students also viewed these general management questions
-
The Davis family of Atlanta, Georgia, is planning its annual summer vacation. Three vacation locations along with criteria weights and location ratings follow. What is the recommended...
-
The National Collegiate Lacrosse Association is planning its annual national championship tournament. It selects 16 teams from conference champions and the highest ranked at-large teams to play in...
-
The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event: The committee members would like to charge $35...
-
Using Dirac delta functions in the appropriate coordinates, express the following charge distributions as three-dimensional charge densities p(x). (a) In spherical coordinates, a charge Q uniformly...
-
Lee Nicholas has been the owner and operator of World.com Advertising since its beginning 10 years ago. The company has prospered. Recently, Nicholas mentioned that he would sell the business for the...
-
The Weaver Watch Company sells watches for $25, the fixed costs are $140,000, and variable costs are $15 per watch. a. What is the firms gain or loss at sales of 8,000 watches? at 18,000 watches? b....
-
We have steady-state diffusion of ammonia in air across a \(0.033 \mathrm{~mm}\) thick film. On one side of the film ammonia concentration is \(0.000180 \mathrm{kmol} / \mathrm{m}^{3}\), and on the...
-
1. Explain the concept of strategic planning to Way Outs owner. 2. Decide what else you might want to know about Way Out. Consider the internal and external factors described on pages 59 to 61, and...
-
1, Consider the following. n = 8 measurements: 5, 3, 6, 8, 5, 5, 4, 7 Calculate the sample variance, s 2 , using the definition formula. (Round your answer to four decimal places.) s 2 = Calculate...
-
1. Since Mr. Snodgrass doesnt have any historical data, (only an estimate of the number of customers hell serve each month), which specific type of qualitative method is he using? What would be the...
-
Given functions f and g, find (a) (fog)(x) and its domain, and (b) (go f)(x) and its domain. f(x)=x, g(x)=x+10 (a) (fog)(x) = (Simplify your answer. Type an exact answer, using radicals as needed.)...
-
What would you expect the nominal rate of interest to be if the real rate is 9.676 percent and the expected inflation rate is 2.343 percent?
-
Which car has the lowest AE if the owner can earn 5% on his best investment? Show your calculations in your working document. Toyota Corolla Toyota Prius Cot initial $ 19,200 $ 25,500 E & E annuels...
-
A proton enters a region of uniform electric field of magnitude 7 9 . 1 N / C with an initial velocity of 2 0 . 1 km / s directed perpendicularly to the electric field. What is the speed of the...
-
Identify two or more reasons why Chinese investment might be theoretically preferable to foreign aid. Then, discuss whether the theoretical concerns regarding foreign aid would also apply to Chinese...
-
Find all equilibrium points of the given system and determine whether we have linear stability at them or not. (please answer both showing your work) (i) x = x^(2)+ y^(2) 1 y = x y (ii) x = 1 ...
-
A semi-infinite solid is initially at uniform temperature Ts. The surface of the semi-infinite solid is suddenly exposed to a constant temperature Tw. (a) Write the governing equations and the...
-
What is the order p of a B + -tree? Describe the structure of both internal and leaf nodes of a B + -tree.
-
Determine the gross profit margin for the commercial construction company. What insight does this give you into the companys financial operations?
-
Determine the return on assets for the commercial construction company. What insight does this give you into the companys financial operations?
-
Determine the pretax return on equity and after-tax return on equity for the commercial construction company. What insight does this give you into the companys financial operations?
Study smarter with the SolutionInn App