Question
In: Accounting
Chp 22 Test Review Black Diamond Company produces snow skis. Each ski requires 1 pounds of...
Chp 22 Test Review
Black Diamond Company produces snow skis. Each ski requires 1 pounds of carbon fiber. The company’s management predicts that 6,500 skis and 7,500 pounds of carbon fiber will be in inventory on June 30 of the current year and that 165,000 skis will be sold during the next (third) quarter. A set of two skis sells for $450. Management wants to end the third quarter with 5,000 skis and 5,500 pounds of carbon fiber in inventory. Carbon fiber can be purchased for $14 per pound. Each ski requires 0.5 hours of direct labor at $19 per hour. Variable overhead is applied at the rate of $9 per direct labor hour. The company budgets fixed overhead of $1,797,000 for the quarter.
Required:
1. Prepare the third-quarter production budget for
skis.
|
|||||||||||||||||
2. Prepare the third-quarter direct materials
(carbon fiber) budget; include the dollar cost of
purchases.
|
||||||||||||||||||||||||||||||||||||
3. Prepare the direct labor budget for the third quarter.
|
||||||||||||||||||||||||
4. Prepare the factory overhead budget for the third quarter.
|
|||||||||||||||||
Solutions
Expert Solution
| Production budget- 3rd Quarter | |
| Budgeted sales units | 165000 |
| Add: Desired ending inventory | 5000 |
| Unit need to be Produced | 170000 |
| Less: Beginning inventory | -6500 |
| Budgeted Production | 163500 |
| Carbon Fibre Purchase material purchase Budget | |
| Production units | 163500 |
| Pound required per Unit | 1 |
| Total Material Required for required Production | 163500 |
| Add: Desired ending inventory | 5500 |
| Total materials required in Pound | 169000 |
| Less: Beginning inventory | -7500 |
| Total purchase to be made (a) | 161500 |
| Raw material cost per pound (b) | $14.00 |
| Total cost of direct materials purchases aXb) | $2,261,000.00 |
| Direct Labour Budget- third Quarter | |
| Production units (a) | 163500 |
| Hour Required per Unit (b) | 0.5 |
| Total direct labor hours (c=aXb) | 81750 |
| Hourly Rate (d) | $19.00 |
| Direct Labour Cost (cXd) | $1,553,250.00 |
| Factory Overhead Budget - Black Diamond Company | |
| Labour Hour Require (a) | 81750 |
| Variable overhead rate per hour (b) | $9.00 |
| Budgeted variable overhead (c=aXb) | $735,750.00 |
| Budgeted fixed overhead (d) | $1,797,000.00 |
| Total Factory Overhead (c+d) | $2,532,750.00 |
ekkarill92 answered 2 years agoRelated Solutions
Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The company’s...
Black Diamond Company produces snow skis. Each ski requires 2
pounds of carbon fiber. The company’s management predicts that
7,000 skis and 8,000 pounds of carbon fiber will be in inventory on
June 30 of the current year and that 170,000 skis will be sold
during the next (third) quarter. A set of two skis sells for $500.
Management wants to end the third quarter with 5,500 skis and 6,000
pounds of carbon fiber in inventory. Carbon fiber can be...
Black diamond company produces snow skis. Each ski requires 3 pounds of carbon fiber. The company’s...
Black diamond company produces snow skis. Each ski requires 3
pounds of carbon fiber. The company’s management predicts that
6,300 skis and 7,300 pounds of carbon fiber will be in inventory on
June 30 of the current year and that 163,000 skis will be sold
during the next (third) quarter. A set of two skis sells for $430.
Management wants to end the third quaerywe with 5,800 skis and
5,300 pounds of carbon fiber in inventory. Carbon fiber can be...
Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The company’s...
Black Diamond Company produces snow skis. Each ski requires 2
pounds of carbon fiber. The company’s management predicts that
6,200 skis and 7,200 pounds of carbon fiber will be in inventory on
June 30 of the current year and that 162,000 skis will be sold
during the next (third) quarter. A set of two skis sells for $420.
Management wants to end the third quarter with 4,700 skis and 5,200
pounds of carbon fiber in inventory. Carbon fiber can be...
Preparing production and mfg. budgets Black Diamond co produces snow skis. Each ski requlires 2 pounds...
Preparing production and mfg. budgets
Black Diamond co produces snow skis. Each ski requlires 2 pounds
of carbon fiber. Teh co. mangement predicts that 5000 skis and 6000
poiunds of carbon fiber will be ininvenotry of jun 30 of the
cureent year andthat 150,000 skis will be sold during the next (
third ) quarter . A set of two skis sells for 300. Management wants
to end the quarter with 3500 skis and 4000 pounds of carbon fiber
in...
The Cross Country Ski Company currently produces bindings for the skis that it also produces and...
The Cross Country Ski Company currently produces
bindings for the skis that it also produces and sells. The monthly
cost of producing 600 sets of bindings is as follows:
Unit-level raw materials
$17,250
Unit-level direct labor
$11,000
Unit-level overhead
$6,500
Batch-level costs
$3,750
Product-level costs
$9,200
Allocated facility-level costs
$15,000
Winter Sports Enterprises has offered to sell comparable
bindings to Cross Country Ski Company for $68.50 per set. The Cross
Country Ski Company is contemplating a decision whether they should...
BLS, AG Skis (BLS), a Swiss company, produces cross-country ski poles that it sells for 18...
BLS, AG Skis (BLS), a Swiss company, produces cross-country ski
poles that it sells for 18 euros (€) a pair. Operating at capacity,
the company can produce 100,000 pairs of ski poles a year, for
which it would have costs as indicated below: Production Costs: Per
unit at 100,000 unit capacity level Total Unit costs 8 € 800,000 €
Product level costs 1 100,000 Facility costs 3 300,000 Selling
Costs: Variable 1 100,000 Fixed 2 200,000 Total costs 15 €...
1) Direct materials variances: Yealink Company produces a product that requires 5.0 standard pounds per unit....
1) Direct materials variances:
Yealink Company produces a product that requires 5.0 standard
pounds per unit. The standard price is $7.50 per pound. If 30,000
units used 72,000 pounds, which were purchased at $8.00 per pound,
what is the direct materials (A) price variance, (B) quantity
variance, and (C) cost variance?
2) Direct labor variances
Yealink Company produces a product that requires 2 standard
direct labor hours per unit at a standard hourly rate of $10 per
hour. If 7,500...
Bellingham Company produces a product that requires 2.5 standard pounds per unit at a standard price...
Bellingham Company
produces a product that requires 2.5 standard pounds per unit at a
standard price of $3.75 per pound. The company used 36,000 pounds
to produce 15,000 units, which were purchased at $4.00 per pound.
Each unit requires 4 standard direct labor hours per unit at a
standard hourly rate of $20 per hour. For the 15,000 units
produced, 61,800 hours were needed and employees were paid an
hourly rate of $19.85 per hour. The company uses a standard...
A). Bellingham Company produces a product that requires 5 standard pounds per unit. The standard price...
A). Bellingham Company produces a product that requires 5
standard pounds per unit. The standard price is $11.5 per pound. If
6,500 units required 33,200 pounds, which were purchased at $10.92
per pound, what is the direct materials (a) price variance, (b)
quantity variance, and (c) total direct materials cost variance?
Enter a favorable variance as a negative number using a minus sign
and an unfavorable variance as a positive number.
a. Direct materials price variance
$
b. Direct materials...
Bellingham Company produces a product that requires 2.5 standard pounds per unit. The standard price is...
Bellingham Company produces a product that requires 2.5 standard
pounds per unit. The standard price is $3.75 per pound. If 15,000
units used 36,000 pounds, which were purchased at $4.00 per pound,
what is the direct materials (a) price variance, (b) quantity
variance, and (c) cost variance? Enter a favorable variance as a
negative number using a minus sign and an unfavorable variance as a
positive number. a. Direct materials price variance $ b. Direct
materials quantity variance $ c....
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Kelson Sporting Equipment, Inc., makes two different types of baseball gloves: a regular model and a...
- Write in Python and as 2 seperate programs Write a program that allows the user to...
- Asymptotic Notation. (a) [10 pts.] Prove that n3 −91n2 −7n−14 = Ω(n3). Your answer must clearly...
- Prepare ONE Page reflection to the readings of the Perceptual Process incorporating as well one outside...
- How is the internet affecting our everyday life? I just need a rough draft for this...
- Please explain your view of the most difficult aspect of Customs Compliance?
- You are required to write an interactive program that prompts the user for seven (7) real...
ADVERTISEMENT