The Gridley Tire Company manufactures racing tires for bicycles. Gridley sells tires for $80 each. Gridley is planning for the next year by developing a master budget by quarters Gridley's balance sheet for December 31, 2024, follows (Click the icon to view the balance sheet) Other data for Gridley Tire Company (Click the icon to view the other data) Read the requirements. Budgeted tires to be produced VOH cost per tire Budgeted VOH First Second Third Fourth Quarter Quarter Quarter Quarter Total 1,350 1,530 1,630 1,730 6,240 $ 4 $ 4 $ 4 $ 4 $ 4 $ 5,400 $ 6,120 $ 6,520 $ 6,920 $ 24,960 Budgeted FOH Depreciation 4,000 4,000 4,000 4,000 16,000 Utilities, insurance, property taxes 17,840 17,840 17.840 17.840 71,360 Total budgeted FOH 21,840 21,840 21,840 21.840 87.360 Budgeted manufacturing overhead costs S 27,240 $27,960 $ 28,360 $ 28,760 $112.320 Direct labor hours 540 612 652 692 2,496 Budgeted manufacturing overhead costs $ 112,320 S 45 Predetermined overhead allocation rate Before preparing the cost of goods sold budget, calculate the projected manufacturing cost per tire for 2025 (Round all amounts to the nearest cent) Direct labor cost per tire Direct materials cost per tire Manufacturing overhead cost per tire Total projected manufacturing cost per tire for 2025 Question list % Question 1 The Gridley Time Company manufactures racing tres for bicycles. Gridley sells tres for $30 each. Gridley is planning for the next year by developing a master budget by quarters. Gridley's balance sheet for December 31, 2024, follows Click the icon to view the balance sheet) Other data for Gridley Tre Company: (Click the icon to view the other data Read the resursments Direct Materials Budget For the Year Ended December 31, 2025 First Second Third Fourth Quarter Quarter Quarter Quarter Total 1,350 1.530 1.630 1.730 6.240 Budgeted tres to be produced Direct ma per te Direct needed for production 2.700 3.060 3.200 3,460 12.480 Plus inventory Desired direct material in ending 978 1.038 1.000 1.000 Total direct materials needed 3.618 4.038 4.296 4.460 13.480 Direct materials in beginning Los Inventory 1.000 918 978 1038 1,000 Budgeted purchases of direct materials 2.618 3.120 3320 3.422 12.480 8.50 S 6.50 $ 6.50 Drect cost per pound More info Budgeted cost of direct ma $ 17017 $ 2020 $21.580 522243 81.120 Prepare the direct labor budget (Enter any hours per unit amounts to two decimal places, XXX, and mund all other amounts to the nearest whole number) (Unless otherwise noted assume all of the folowing events occured during 2004 and that any balances given are stated as of December 31, 2004) a Budgeted sales are 1,400 tree for the first quarter and expected to increase by 100 tres per quarter Cash sales are expected to be 20% of total sites, with the remaining 80% of sales on account Frished Goods Inventory on December 31, 2024 asists of 500 Tr Total $34 6240 Desired ending Finished Goods Inventory is 30% of the nest quarter's sales first quarter sales for 2020 expected be 1,800 FIFO inventory costing method is used 0.40 d. Raw Mate Inventory on December 31, 2024, consists of 1,000 pounds of rubber compound used to manufacture the tre 2496 05 Drect materials requirements are two pounds of a rubber compound per tive The cost of the compound is 50.50 per pound 24.900 Desired ending Raw Materias Inventory 30% of the next quarter's direct materials needed for producten: desired ending inventory for December 31, 2025 is 1,000 pounds indirect materials are insignificant and not considered for budgeting purpos whead FOH 9. Each requires 0.40 hours of direct labor, direct labor costs average $10 per hour Variable manufacturing overhead is 54 per te Fed manufacturing overhead includes $4,000 per quarter in deprecation and $17.840 per quarter for other costs, such as uises, insurance, and property taxes Fixed selling and administrative expenses include $10,000 per quarter for salaries: $5,700 per quarter for rent$1350 per quarter for insurance, and $1,500 per quarter for depreciation Variable selling and administrative expenses include supplies at 3% of Capal expenditures include $35,000 for manufacturing equipment to be purchased and dis the first quarter Total m. Cash receipts for sales on account are 80% in the quarter of the sale and 20% in the quartering The December 31, 2024, Accounts Receivable is received in the first quarter of 2025 uncollectible accounts are considered insignificant and not considered for budgeting purposes n. Direct materials purchases are paid 60% in the quarter purchased and 40% in the folowing quarter December 31, 2004, Accounts Payable is paid in the first quarter of 2025 Direct labor manufacturing overheat, and seling and administrative costs are paid in the quart p. Income tax expense is projected at $3.500 per quarter and is paid in the quarter inc 4. Gidey desires to maintain a minimum cash balance of $35.000 and borrows from the local bank needed in increments of $1.000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000 interest% per year and paid at the beginning of the quarter based on the amount outstanding from the previou Print Done 16.000 40 71360 40 87360 The Gridley Tire Company manufactures racing tires for bicycles. Gridley sells tires for $80 each. Gridley is planning for the next year by developing a master budget by quarters Gridley's balance sheet for December 31, 2024, follows: (Click the icon to view the balance sheet.) Other data for Gridley Tire Company (Click the icon to view the other data.) Read the requirements. First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be produced 1,350 1,530 1,630 1,730 6,240 VOH cost per tire $ 4 $ 4 S 4 S 4 $ 4 Budgeted VOH $ 5,400 $ 6,120 $ 6,520 $ 6,920 $ 24,960 Budgeted FOH Depreciation 4,000 4,000 4,000 4,000 16,000 Utilities, insurance, property taxes 17,840 17,840 17.840 17.840 71,360 Total budgeted FOH 21,840 21,840 21.840 21.840 87.360 Budgeted manufacturing overhead costs $ 27,240 $ 27,960 $ 28,360 $ 28,760 $ 112.320 Direct labor hours 540 612 652 692 2,496 Budgeted manufacturing overhead costs $ 112,320 S 45 Predetermined overhead allocation rate Before preparing the cost of goods sold budget, calculate the projected manufacturing cost per tire for 2025 (Round all amounts to the nearest cent) Direct labor cost per tire Direct materials cost per tire Manufacturing overhead cost per tire Total projected manufacturing cost per tire for 2025 Question list % Question 1 The Gridley Tire Company manufactures racing refor bicycles. Griday sals tres for $80 each. Gridley planning for the next year by developing a master budget by quarters. Gridley's balance sheet for December 31, 2004, follows (Click the icon to view the balance sheet Other data for Gridley Tee Company Click the can to view the r Read the p Requirement 1. Prepare Gridley's operating budget and cash budget for 2025 by quarter Required schedules and budgets include sales budget, production budget direct materials budget direct labor budget fri overhead budget cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget. Manufacturing overhead costs are located based on direct labor hours Round all calculations to the nearest dolar Begin by preparing the sales budget Gridley Tire Company Sales Budget For the Year Ended December 31, 2025 First Second Quarter Quarter Third Quarter Fourth Quarter Total Budgeted tires to be sold 1400 1300 1.800 1,700 6.300 Sales price per unit Total Prepare the production budget Beview the stud Gridley Tire Company Production Budget For the Year Ended December 31, 2025 First Second Third Quarter Quarter Quarter Fourth Quarter Total 1,400 1.500 1.800 1.700 6200 Plus: Desired resin ending inventory 450 480 510 540 540 Totalt needed 1,850 1,950 2.110 2.240 6740 Less Tres in beginning inventory 500 450 480 510 Budgeted tres to be produced 1350 1.530 1630 1730 6.240 Prepare the direct mate budget Beve the auction budget your Gridley Tire Company Direct Materials Budget For the Year Ended December 31, 2025 First Quarter Second Third Fourth Quarter Quarter Quarter Total Budgeted to be produced 1.350 1.300 1.630 1730 6240 2 Direct for production 2.700 3,000 3200 3480 12480 Desired direct materials ending Plus inventory 918 1,000 1,000 Total direct mara nedel 3616 4.00 429 4.460 13.480 Direct materials in beginning Less entry 1,000 918 1.000 Budgeted purchases of direct 2618 3130 3320 3.422 12.480 6.50 Drect mate cost per pound Budged cost of direct materials 22.243 1.120 Prepare the direct labor budget (Enter any hours per unit amounts to two decimal places, XXX, and all other amounts to the nearest whole numbe Review the production budget hard Gridley Tire Company