{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-29T02:34:57-04:00", "answer_date": "2024-06-29 02:34:57", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4449911", "url": "\/study-help\/questions\/warsaw-ltd-operates-at-capacity-and-makes-glasstopped-dining-tables-4449911", "question_creation_date_js": "2024-06-29T02:34:57-04:00", "question_creation_date": "Jun 29, 2024 02:34 AM", "meta_title": "[Solved] Warsaw Ltd operates at capacity and makes | SolutionInn", "meta_description": "Answer of - Warsaw Ltd operates at capacity and makes glass-topped dining tables and wooden chairs, which are then typically sold | SolutionInn", "meta_keywords": "warsaw,ltd,operates,capacity,makes,glass-topped,dining,tables,wooden,chairs,typically,sold", "question_title_h1": "Warsaw Ltd operates at capacity and makes glass-topped dining tables and wooden chairs, which are then typically sold as sets of four chairs with one", "question_title": "Warsaw Ltd operates at capacity and makes glass-topped dining tables and wooden", "question_title_for_js_snippet": "Warsaw Ltd operates at capacity and makes glass topped dining tables and wooden chairs, which are then typically sold as sets of four chairs with one table However, some customers purchase replacement or extra chairs, and others buy some chairs or a table only, so the sales mix is not exactly 4 1 Warsaw Ltd is planning its annual budget for the financial year 2020 Information for 2020 is as follows Input prices Direct materials Wood$5 30 per board metre Glass$11 5 per sheet $14 per direct manufacturing labourDirect manufacturing labourhour Input quantities per unit of output ChairsTables Direct materials Wood1 2 board metres1 7 board metres Glass 2 sheets Direct manufacturing labour 3 hours 6 hours Machine hours (MH) 2 MH 5 MH Inventory information, direct materials Wood Glass Beginning inventory 27 200 board metres 8 700 sheets Target ending inventory 29 360 board metres 9 500 sheets Sales and inventory information, finished goods Chairs Tables Expected sales in units 172 000 45 000 Selling price $70 $900 Target ending inventory in units 8 400 2 050 Beginning inventory in units 7 500 2 150 Chairs are manufactured in batches of 500 and tables are manufactured in batches of 50 It takes three hours to set up for a batch of chairs and two hours to set up for a batch of tables Warsaw Ltd uses activity based costing and has classified all overhead costs as shown in the table below Budgeted Budgeted Cost type variable fixed Cost driver allocation base Manufacturing Materials handling $342 840 $600 000 Number of board metres used Set up 97 000 300 740 Set up hours Processing 789 250 5 900 000 Machine hours Non manufacturing Marketing 2 011 200 4 500 000 Sales revenue Distribution 54 000 380 000 Number of deliveries", "question_description": "

Warsaw Ltd operates at capacity and makes glass-topped dining tables and wooden chairs, which are then typically sold as sets of four chairs with one table. However, some customers purchase replacement or extra chairs, and others buy some chairs or a table only, so the sales mix is not exactly 4:1. Warsaw Ltd is planning its annual budget for the financial year 2020. Information for 2020 is as follows:<\/p>

<\/p>

Input prices<\/strong><\/p>

Direct materials<\/p>

Wood$5.30 per board metre<\/p>

Glass$11.5 per sheet<\/p>

$14 per direct manufacturing labourDirect manufacturing labourhour<\/p>

<\/p>

Input quantities per unit of output<\/strong><\/p>

ChairsTables<\/strong><\/p>

Direct materials<\/p>

Wood1.2 board metres1.7 board metres<\/p>

Glass ? 2 sheets<\/p>

<\/p>

Direct manufacturing<\/p>

labour 3 hours 6 hours<\/p>

Machine-hours (MH) 2 MH 5 MH<\/p>

<\/p>

Inventory information, direct materials<\/strong><\/p>

Wood<\/strong> Glass<\/strong><\/p>

Beginning inventory 27 200 board metres 8 700 sheets<\/p>

Target ending inventory 29 360 board metres 9 500 sheets<\/p>

<\/p>

Sales and inventory information, finished goods<\/strong><\/p>

Chairs<\/strong> Tables<\/strong><\/p>

Expected sales in units 172 000 45 000<\/p>

Selling price $70 $900<\/p>

Target ending inventory in units 8 400 2 050<\/p>

Beginning inventory in units 7 500 2 150<\/p>

<\/p>

Chairs are manufactured in batches of 500 and tables are manufactured in batches of 50. It takes three hours to set up for a batch of chairs and two hours to set up for a batch of tables. Warsaw Ltd uses activity-based costing and has classified all overhead costs as shown in the table below:<\/p>

\"image<\/div><\/div><\/div> Budgeted Budgeted Cost type variable fixed Cost driver\/allocation base Manufacturing: Materials handling $342 840 $600 000 Number of board metres used Set-up 97 000 300 740 Set-up hours Processing 789 250 5 900 000 Machine-hours Non- manufacturing: Marketing 2 011 200 4 500 000 Sales revenue Distribution 54 000 380 000 Number of deliveries", "transcribed_text": "", "related_book": { "title": "Accounting Principles", "isbn": "1119491630, 978-1119491637, 978-0470534793", "edition": "10th Edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/54.jpg", "uri": "\/textbooks\/accounting-principles-10th-edition-54", "see_more_uri": "" }, "free_related_book": { "isbn": "0691241805", "uri": "\/textbooks\/the-power-of-organizations-a-new-approach-to-organizational-theory-1st-edition-9780691241807", "name": "The Power Of Organizations A New Approach To Organizational Theory", "edition": "1st Edition" }, "question_posted": "2024-06-29 02:34:57", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-13", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/find-the-number-such-the-line-y-b", "description": "Find the number such that the line y = b divides the region bounded by the curves y = x2 and y = 4 into two regions with equal area.", "stars": 3 }, { "url": "\/study-help\/psychology\/if-the-job-involves-a-client-load-or-caseload-what-1980774", "description": "If the job involves a client load or caseload, what is it?", "stars": 3 }, { "url": "\/the-dress4less-company-operates-a-chain-of-mens-clothing-stores", "description": "The Dress4Less Company operates a chain of mens clothing stores that sells 10 different styles of inexpensive mens suits with identical unit costs and selling prices. 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