use Req 1-4 to answer req 5-7
C D E 1 Req 2: First, fill in the missing costs. Then, calculate the company's predetermined manufacturing 2 overhead rate, assuming the company uses direct labor hours as its allocation base. 4 Type of Cost 5 Selling and Administrative salaries and expenses 6 Direct Labor (Estimated 40,000 DL hours @ average wage rate of $11 per hour) 7 Indirect plant labor 3 Plant utilities 9 Purchases of direct materials LO Lease and property taxes on the plant 11 Marketing expenses Depreciation on production equipment (equipment originally costing $700,000 three year ago is being depreciated over a 5 year useful life using straight-line 12 depreciation. No salvage value is expected.) 13 Indirect materials to be used in the plant Estimated total cost for the year $ 210,000 $ 40,000 $ 60,000 $ 70,000 1,500,000 $ 120,000 30,000 $ 140,000 $ 20,000 Predetermined Overhead Rate = 9.75 per direct labor hour 1 Req. 3: The production engineers have given you the materials requirements for each Black & White 2 handbag. Assume that no efficiencies in materials can be achieved by producing more than one unit per 3 batch. Complete the Bill of Materials for Job #114 found below. Be sure to include number of units being 4 produced in the Job as well as the total quantity needed of each direct material. BILL OF MATERIALS JOB 114 3 Model: BW14923 9 Number of units: Total Quantity Needed 10 Part Number 11 BWFF 12 BWCheck 13 BFringe 14 BStrap 15 Pican 16 Int4 Description Black and White Floral Fabric Black and White Checkered Fabric Black Fringe Trim Black Shoulder Strapping Plastic Canvas Interfacing: Level 4 sturdiness rating Quantity needed per unit 0.50 yards 0.75 yards 1.00 yards 1.75 yards 0.25 sheets 0.50 yards A B C 1 Req. 4: The production engineers have also given you the production labor requirements for each individual 2 bag produced, assuming one bag is produced at a time. Since each bag must be sewn and ironed individually, no 3 sewing and ironing labor efficiencies can be achieved by producing larger batch sizes. Recall, however, that 4 fabric can be stacked for cutting purposes, such that the material for four bags can be cut in the same amount of 5 time it would take to cut one individual bag. Compute the estimated labor time requirement for producing Job 6 114. Estimated Labor JOB 114 11 Number of units: Time per Bag Activity (in minutes) 13 Cutting 30 14 Sewing 70 15 Ironing 8 Total Minutes Required for Job 114: Total Estimated Time (in minutes) 300 2,800 320 3,420 Total Hours Required for Job 114: 1 Req. 5: Use the estimated labor time requirement to schedule production of Job 114, including the start 2 and end dates. Assume the plant will already be operating at full capacity every day while completing 3 Jobs 111, 112, and 113. Also assume that only 4 direct laborers with the needed skill set will be 4 available for this job. These hourly employees are only allowed to work a maximum of 8 hours per day so 5 that the company can avoid paying overtime premiums. No Production Schedule For the month of October Scheduled Start Date 10 11 Job Model Number 111 Headbands - HB246 112 14 inch pillows-P14 113 Draperies-GB159 114 Black & White BW14923 Stock or Customer Perreth Slothower Stock Katie's & Stock Quantity 200 30 80 10/1 10/4 Scheduled End date 10/3 10/5 10/9 10/6 Total Hours Required for Job 114: from (Req4) Total Hours Skilled Workforce is Available per Day: Number of Days Required for Production: 29 Reg. 6: In addition to the direct materials shown on the Bill of Materials, what indirect materials might 30 be used in the factory while Job 114 is being produced? List at least 2 items. 37 Req. 7: What types of production equipment will be needed for producing Job #114? List at least 5 38 items. (Consider what you may need to cut, sew, and iron)
