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Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Each handisaw sells
Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Each handisaw sells for $ Wesley expects the following unit sales:
tableJanuaryFebruaryMarchAprilMay
Wesley's ending finished goods inventory policy is percent of the next month's sales.
Suppose each handisaw takes approximately hour to manufacture, and Wesley pays an average labor wage of $ per hour.
Each handisaw requires two plastic components that Wesley purchases from a supplier at a cost of $ each. The company has an ending direct materials inventory policy of percent of the following month's production requirements. Materials other than the plastic components total $ per handisaw.
Manufacturing overhead for this product includes $ annual fixed overhead based on production of units and $ per unit variable manufacturing overhead. Wesley's selling expenses are percent of sales dollars, and administrative expenses are fixed at $ per month.
Required:
Compute the following for the first quarter:
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar.
tableJanuary Budgeted Sales Revenue, Budgeted Production in Units, Budgeted Cost of Direct Materials Purchases for the Plastic Housings, Budgeted Direct Labor Cost,
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