Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Spring Manufacturing Company makes two components identified as C 1 2 and D 5 7 . Selected budgetary data for 2 0 2 2 follow:
Spring Manufacturing Company makes two components identified as C and D Selected budgetary data for follow:
Finished Components
C D
Requirements for each finished component:
RM pounds pounds
RM pounds
RM pounds pound
Direct labor hours hours
Product information:
Sales price $ $
Sales units
Estimated beginning inventory units
Desired ending inventory units
Direct Materials Information
RM RM RM
Cost per pound $ $ $
Estimated beginning inventory in pounds
Desired ending inventory in pounds
The firm expects the average wage rate to be $ per hour in Spring Manufacturing uses direct labor hours to apply overhead. Each year the firm determines the overhead application rate for the year based on budgeted direct labor hours for the year. The firm maintains negligible WorkinProcess Inventory and expects the cost per unit for both beginning and ending inventories of finished products to be identical.
Factory Overhead Information
Indirect materialsvariable $
Miscellaneous supplies and toolsvariable
Indirect laborvariable
Supervisionfixed
Payroll taxes and fringe benefitsvariable
Maintenance costsfixed
Maintenance costsvariable
Depreciationfixed
Heat, light, and powerfixed
Heat, light, and powervariable
Total $
Selling and Administrative Expense Information
Advertising $
Sales salaries
Travel and entertainment
Depreciationwarehouse
Office salaries
Executive salaries
Supplies
Depreciationoffice
Total $
The effective income tax rate for the company is
Required:
Prepare the Sales budget for
Prepare the Production budget for
Prepare the Direct materials purchases budget units and dollars for
Prepare the Direct labor budget for
Prepare the Factory overhead budget for
Prepare the Cost of goods sold and ending finished goods inventory budgets for
Prepare the Selling and administrative expense budget, broken down into two components: Selling Expenses and Administrative Expenses for
Prepare the Budgeted income statement, the last item of which is labeled Aftertax Operating Income for
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started