Question

In: Accounting

Exercise 7-7 Manufacturing: Direct labor and factory overhead budgets LO P1 Addison Co. budgets production of...

Exercise 7-7 Manufacturing: Direct labor and factory overhead budgets LO P1

Addison Co. budgets production of 2,850 units during the second quarter. Other information is as follows:

Direct labor Each finished unit requires 6 direct labor hours, at a cost of $9 per hour.
Variable overhead Applied at the rate of $11 per direct labor hour.
Fixed overhead Budgeted at $640,000 per quarter.


1. Prepare a direct labor budget.
2. Prepare a factory overhead budget.

Exercise 7-18 Budgeted cash receipts LO P2

Jasper Company has sales on account and for cash. Specifically, 65% of its sales are on account and 35% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $515,000 for April, $525,000 for May, and $550,000 for June. The beginning balance of Accounts Receivable is $291,300 on April 1.

Prepare a schedule of budgeted cash receipts for April, May, and June.

Solutions

Expert Solution

Ans)

7-7)

1)

Addision company

Direct labour budget

Second quarter

Units to be produced = 2850 units

Labour requirements per unit =6 direct labour hours

Total labour hours needed = 17100 hours

Labour rate = 9 per hour

Labour dollars = 17100 X 9 = $153900

2) Factory overhead budget

Addison Co

Factory Overhead budget

Second quarter

Total labour hours needed = 17100

Variable factory overhead rate per DL hour = $11

Budgeted variable overhead = 17100 X 11 = 188100

Budgeted fixed overhead = 640,000

Budgeted total overhead = 828100

--------------------------------------------------------------------------------------------------------------------

7-18

April May June

Cash sales -- 35% 180250 183750 192500

Sales on account - 65% 334750 341250 357500

Total sales 515000 525000 550,000

JASPER COMPANY

Cash Receipts Budget

For April, May, and June

April    May June

Cash receipts from:

Cash sales   180250 183750 192500   

Collection of accounts receivable 291300   334750 341250

Total cash receipts 471550 518500 533750

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 MCO Leather Goods manufactures...
Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 MCO Leather Goods manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $4 per pound and 0.7 direct labor hours at a rate of $10 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $16,000 per month. The company’s policy is to end each month with direct materials inventory equal to...
Savannah Factory applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor...
Savannah Factory applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor for August follows: Estimated Actual Overhead cost $174,000 $171,100 Direct labor hours 5,800 5,900 Direct labor cost $87,000 $89,975 How much overhead should be applied in total during August? A. $179,950 B. $174,000 C. $177,000 D. $171,100 The manufacturing operations of Saltic Enterprises had the following balances for the month of March: March 1, 2013 March 31, 2013 Raw Materials $11,000 $14,000 Work in...
A manufacturing company applies factory overhead based on direct labor hours.
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000and direct labor hours would be 45,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 47,000. The entry to apply the factory overhead costs for the year would include aa. debit to factory overhead for $377,200.b. debit to factory overhead for $360,000.c. credit to factory overhead for $376,000.d. credit to...
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the...
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $327,691 and direct labor hours would be 46,813. Actual factory overhead costs incurred were $344,427, and actual direct labor hours were 51,254. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a.$31,087 underapplied b.$14,351 overapplied c.$14,351 underapplied d.$358,778 overapplied
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the...
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $540,000 and direct labor hours would be 45,000. Actual factory overhead costs incurred were $566,000, and actual direct labor hours were 47,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the...
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $344,000 and direct labor hours would be 45,000. Actual manufacturing overhead costs incurred were $316,200, and actual direct labor hours were 54,400. The entry to apply the factory overhead costs for the year would include a a.debit to Factory Overhead for $316,200 b.credit to Factory Overhead for $344,000 c.credit to Factory Overhead for $415,616 d.debit...
Exercise 7-5 Manufacturing Overhead Budget [LO7-6] The direct labor budget of Yuvwell Corporation for the upcoming...
Exercise 7-5 Manufacturing Overhead Budget [LO7-6] The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter   Budgeted direct labor-hours 8,200 8,300 8,600 8,000 The company’s variable manufacturing overhead rate is $2.25 per direct labor-hour and the company’s fixed manufacturing overhead is $50,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $12,500 per quarter. Required: 1....
2- A manufacturing company applies factory overhead based on direct labor hours. At the beginning of...
2- A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $282,646 and direct labor hours would be 40,378. Actual factory overhead costs incurred were $358,062, and actual direct labor hours were 53,283. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a.$14,919 underapplied b.$90,335 underapplied c.$14,919 overapplied d.$372,981 overapplied 3 - Costs that are incurred in generating...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Standard CostsActual CostsDirect materials251,600 lbs. at $5.40249,100 lbs. at $5.20Direct labor18,500 hrs. at $17.3018,930 hrs. at $17.70Factory overheadRates per direct labor hr.,based on 100% of normalcapacity of 19,310 directlabor hrs.:Variable cost, $4.80$87,910 variable costFixed cost, $7.60$146,756 fixed costEach unit...
MAnufacturing overhead is applied on the basis of direct labor hours. The direct labor hours for...
MAnufacturing overhead is applied on the basis of direct labor hours. The direct labor hours for the period are 500 and the estimated manufacturing overhead is 2000. actual direct labor hours were 160 and actual overhead was 1000. Compute the manufacturing overhead applied during this period.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT