what is the manufacturing overhead cost per tire? i put $2.00 and it marked it incorrect. thank you!

The Gilder Tire Company manufactures racing tires for bicycles. Gilder sells tires for $80 each. Gilder is planning for the next year by developing a master budget by quarters. Gilder's balance sheet for December 31, 2018, follows: (Click the icon to view the balance sheet.) Other data for Gilder Tire Company: (Click the icon to view the other data.) Read the requirements Requirement 1. Prepare Gilder's operating budget and cash budget for 2019 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing 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 allocated based on direct labor hours. Round all calculations to the nearest dollar Begin by preparing the sales budget. Gilder Tire Company Sales Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be sold 1,000 1.250 1,500 1,750 5,500 $ 80 $ Sales price per unit 80$ 80 $ 80 $ $ 80,000 $100,000 $ 120,000 $ 140,000 $ 440,000 Total sales Prepare the production budget. Choose from any list or enter any number in the input fields and then click Check Answer. 2 The Gilder Tire Company manufactures racing tires for bicycles. Gilder sells tires for $80 each. Gilder is planning for the next year by developing a master budget by quarters. Gilder's balance sheet for December 31, 2018, follows: Click the icon to view the balance sheet.) Other data for Gilder Tire Company: (Click the icon to view the other data.) Read the requirements Prepare the production budget. Review the sales budget you prepared above. Gilder Tire Company Production Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Budgeted tires to be sold 1.000 1.250 1,500 Plus: Desired tires in ending inventory 500 600 700 Total tires needed 1,500 1,850 2,200 Less: Tires in beginning inventory 200 500 600 1,300 1,350 1,600 Budgeted tires to be produced Fourth Quarter Total 1,750 800 5,500 800 2,550 700 6,300 200 1,850 6.100 Prepare the direct materials budget The Gilder Tire Company manufactures racing tires for bicycles. Gilder sells tires Other data for Gilder Tire Company: for $80 each. Gilder is planning for the next year by developing a master budget (Click the icon to view the other data.) by quarters. Gilder's balance sheet for December 31, 2018, follows: (Click the icon to view the balance sheet.) Read the requirements Gilder Tire Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be produced 1,300 1,350 1,600 1,850 6,100 Direct materials per tire 2 2 2 2 2 Direct materials needed for production 2,600 2,700 3,200 3,700 12,200 Plus: Desired direct materials in ending inventory 1,350 1,600 1,850 400 400 Total direct materials needed 3,950 4,300 5,050 4,100 12,600 400 Less: Direct materials in beginning inventory 1,350 1,600 1,850 400 Budgeted purchases of direct materials 3,550 2,950 3,450 2.250 12,200 $ 5.00 $ Direct materials cost per pound 5.00 5.00 $ 5.00 S 5.00 $ 17,750 $ 14.750 $ 17.250 $ 11,250 $ Budgeted cost of direct materials 61,000 no Choose from any list or enter any number in the input fields and then click Check Answer. imilar tal More Info (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,000 tires for the first quarter and expected to increase by 250 tires per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. b. Finished Goods Inventory on December 31, 2018 consists of 200 tires at $24 each. c. Desired ending Finished Goods Inventory is 40% of the next quarter's sales; first quarter sales for 2020 are expected be 2,000 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 400 pounds of rubber compound used to manufacture the tires. e. Direct materials requirements are 2 pounds of a rubber compound per tire. The cost of the compound is $5.00 per pound. Desired ending Raw Materials Inventory is 50% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019 is 400 pounds; indirect materials are insignificant and not considered for budgeting purposes. g. Each tire requires 0.30 hours of direct labor, direct labor costs average $20 per hour. h. Variable manufacturing overhead is $2 per tire. i. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $1,600 per quarter for other costs, such as utilities, insurance, and property taxes. j. Fixed selling and administrative expenses include $8,000 per quarter for salaries: $5,100 per quarter for rent; $900 per quarter for insurance; and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 1% of sales. 1. Capital expenditures include $30,000 for new manufacturing equipment, to be purchased and paid in the f Print Done i More Info -X WWW WY vouvre production; desired ending inventory for December 31, 2019 is 400 pounds; indirect materials are insignificant and not considered for budgeting purposes. g. Each tire requires 0.30 hours of direct labor, direct labor costs average $20 per hour. h. Variable manufacturing overhead is $2 per tire. i. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $1,600 per quarter for other costs, such as utilities, insurance, and property taxes. j. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $5,100 per quarter for rent; $900 per quarter for insurance; and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 1% of sales. 1. Capital expenditures include $30,000 for new manufacturing equipment, to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 80% in the quarter of the sale and 20% in the quarter following the sale: December 31, 2018, Accounts Receivable is received in the first quarter of 20119; uncollectible accounts are considered insignificant and not considered for budgeting purposes. n. Direct materials purchases are paid 80% in the quarter purchased and 20% in the following quarter, December 31, 2018, Accounts Payable is paid in the first quarter of 2019. o. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. p. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. 4. Gilder desires to maintain a minimum cash balance of $70,000 and borrows from the local bank as 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 is 8% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. i Data Table - actu For the eet fd aland Gilder Tire Company S 00 Balance Sheet December 31, 2018 (Ent nearest whole Assets ou Current Assets: 73,000 22,000 2,000 4,800 Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation 101,800 142,000 (68,000) produd 74,000 Total Assets 175,800 Liabilities Current Liabilities: any Print Done Check An i Data Table - X ufactu for the heet fd baland wwwwwwwww Raw Materials Inventory 2,000 4,800 100 ials Finished Goods Inventory $ t. (Ent Total Current Assets 101,800 nearest whole youp Property, Plant, and Equipment: Equipment 142,000 (68,000) Less: Accumulated Depreciation 74,000 175,800 Total Assets Liabilities Current Liabilities: Accounts Payable 10,000 Stockholders' Equity Common Stock, no par produd 130,000 35,800 Retained Earnings Total Stockholders' Equity 165,800 Total Liabilities and Stockholders' Equity 175,800 er any Print Done Review the production budget you prepared above. Gilder Tire Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be produced 1,300 1,350 1,600 1,850 6,100 Direct labor hours per unit 0.30 0.30 0.30 0.30 0.30 Direct labor hours needed for production 390 405 480 555 1,830 Direct labor cost per hour $ 20 $ 20 $ 20 $ 20 $ 20 7,800 $ 8,100 $ Budgeted direct labor cost 9,600 $ 11,100 $ 36,600 Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing overhead.) Review the production budget you prepared above. Review the direct labor budget you prepared above. $ First Second Third Fourth ab Quarter Quarter Quarter Quarter Total 1,300 1.350 1,600 1,850 6,100 $ 2 $ 2 $ 2 $ 2 2 $ $ 2,600 $ 2.700 $ 3,200 $ 3,700 $ 12,200 4,500 4,500 4,500 1,600 4,500 1,600 18,000 6,400 1,600 1,600 d! Budgeted tires to be produced oth VOH cost per tire ds Budgeted VOH rte Budgeted FOH ab Depreciation Utilities, insurance, property taxes pita he Total budgeted FOH Budgeted manufacturing overhead costs sh ow colle Direct labor hours Budgeted manufacturing overhead costs rect Predetermined overhead allocation rate con 6.100 6.100 6,100 6,100 24,400 $ 8,700$ 8,800 $ 9,300 $ 9,800 $ 36,600 390 405 480 555 1,830 36,600 $ $ 20 on wi old Before preparing the cost of goods sold budget, calculate the projected manufacturing cost per tire for 2019. (Round all amounts to the nearest cent.) Direct materials cost per tire 10.00 Direct labor cost per tire 6.00 Manufacturing overhead cost per tire 2.00 18.00 Total projected manufacturing cost per tire for 2019 en