Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Eastern Technology Company manufactures Weather Radios for sale to retailers such as Wal- Mart, Target, etc. The 2016 quarterly unit sales estimates and projected

image text in transcribed
image text in transcribed
image text in transcribed
The Eastern Technology Company manufactures Weather Radios for sale to retailers such as Wal- Mart, Target, etc. The 2016 quarterly unit sales estimates and projected sales prices per unit areas follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales units 9,200 9,300 9,500 9,400 Price per unit $90 $90 $90 $90 Also, note that that projected sales and projected production) for Quarter 1 of 2017 is 10,000 units. Product Cost Assumptions The company's product requires two raw materials.resistors and switches. Cost parameters are as follows: Number of Components/Unit Switches @ $4/switch Resistors @ $8/switch 3 2 Number of minutes required to complete finished unit Direct labor minutes per unit Machine minutes per unit 30 12 Hour rates used Direct labor rate= $10/hour Manufacturing overhead rates (ie, the POHRs to use to apply overhead) Labor-related- $25/hour Machine-related- $40/hour MacBook Pro Number of minutes required to complete finished unit Direct labor minutes per unit Machine minutes per unit 30 12 Hour rates used Direct labor rate= $10/hour Manufacturing overhead rates (i.e., the POHRs to use to apply overhead) Labor-related= $25/hour Machine-related= $40/hour Eastern applies manufacturing overhead using two cost drivers: direct-labor hours and machine hours. Ending Inventories The desired ending inventories for each of the two direct materials is 10% of the next quarter's respective amount of direct materials needed for production. The desired finished goods ending inventory is 5% of the next quarter's budgeted sales units. Beginning inventory for direct materials and finished goods are assumed to be zero as of 1/1/2016. This is an individual assignment. Sharing of work product or discussion of your results with other students (current, past or future) is a violation of the Academic Honesty Code and will be reported to the Academic Honesty Committee. D MacBook Pro I D E F G Manufacturing Overhead Budget Q1 Labor-related rate per hour DL hours required Labor-related OH cost $ Q2 25 4,832.50 120,812.50 Q3 25 4,655.00 116,375.00 $ Q4 25 4,747.50 118,687.50 $ 25 4,715.00 117,875.00 Machine-related rate per hour Machine hours required Machine-related OH cost 40 1,933 $77,320 40 1,862 $74,480 40 1,899 $75,960 40 886 $75,440 Total OH costs OH Cost per unit produced $198,132.50 20.50 $ $190,855 20.50 $ $ $194,647.50 20.59 $ $193,315 20.50 Total Product Cost per Unit Cost of Goods Sold $ $ $ $ $ $ $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Dynamic Data Sharing For Public Data Integrity Auditing In The Cloud

Authors: B Gunalan

1st Edition

050911878X, 978-0509118789

Students also viewed these Accounting questions