A company is preparing its direct labor budget for the 2021 from the following production budget based on a calendar year: Quarter Units 1 40 , 000 2 20 , 000 3 30 , 000 4 50 , 000 Each unit requires 1.5 hours of direct labor. The union contract provides for a 10% increase in wage rate to P11 per hour beginning October 1, 2021 . Questions: 1 . How much direct labor cost is budgeted for 2021 ? P 2. What is the amount of direct labor cost budget for the 4th quarter ? P NOTE:

A company is preparing its direct labor budget for the 2021 from the following production budget based on a calendar year: Quarter Units 1 40 , 000 2 20 , 000 3 30 , 000 4 50 , 000 Each unit requires 1.5 hours of direct labor. The union contract provides for a 10% increase in wage rate to P11 per hour beginning October 1, 2021 . Questions: 1 . How much direct labor cost is budgeted for 2021 ? P 2. What is the amount of direct labor cost budget for the 4th quarter ? P NOTE:

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter21: Budgeting

Section: Chapter Questions

Problem 21.1APR: Forecast sates volume and sales budget For 20Y8, Raphael Frame Company prepared the sales budget...

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Forecast sates volume and sales budget For 20Y8, Raphael Frame Company prepared the sales budget that follows. At the end of December 20Y8, the following unit sales data were reported for the year: Unit Sales 8" 10" Frame 12" 16" Frame East 8,755 3,686 Central 6,510 3,090 West 12,348 5,616 For the year ending December 31, 20Y9, unit sales are expected to Follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the 8" 10" the frame is expected to Increase to 17 and the unit selling price for the 12" 16" frame is expected to increase to 32, effective January 1, 20Y9. Instructions 1. Compute the increase or decrease of actual unit sales for the year ended December 31,. 20Y8, Over budget. Place your answers in a columnar table with the following format: 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to lie used for preparing the sales budget for the year ending December 31, 20Y9. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest. 20Y8 Percentage 20Y9 Actual Increase Budgeted Units (Decrease) Units (rounded) 3. Prepare a sales budget for the year ending December 51. 20Y9.
Forecast sales volume and sales budget Sentinel systems Inc. prepared the following sales budget for 20Y8: At the end of December 20Y8, the following unit sales data were reported for the year: Unit Sales Home Alert System Business Alert System United States 1,734 1,078 Europe 609 329 Asia 432 252 For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending October 31, 20Y8. The unit selling price for the Home: Alert System is expected to increase to 250, and the unit selling price for the Business Alert System is expected to be increased 820, effective January 1, 20Y9. Instructions 1. Compute the increase or decrease.ase of actual unit sales for the year ended October 31, 20Y8, over budget. Place your answers in a columnar table with the following format: 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest unit. 20Y8 Percentage 20Y9 Actual Increase Budgeted Units (Decrease) Units (rounded) 3. Prepare a sales budget for the year ending December 31, 201Y9
Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y8, the following tentative trial balance as of December 31, 20Y7, is prepared by the Accounting Department of Mesa Publishing Co.: Cash 26,000 Accounts Receivable 23,800 Finished Goods 16,900 Work in Process 4,200 Materials 6,400 Prepaid Expenses 600 Plant and Equipment 82.000 Accumulated DepreciationPlant and Equipment 32,000 Accounts Payable 14.800 Common Stock. 1.50 par 30,000 Retained Earnings 83,100 159,900 159,900 Factory output and sales for 20Y8 are expected to total 3,800 units of product, which are to be sold at 120 per unit. The quantities and costs of the inventories at December 31, 20Y8, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Estimated Costs and Expenses Fixed Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials 30.00 Direct labor B.40 Factory overhead: Depreciation of plant and equipment 4,000 Other factory overhead 1,400 4.30 Selling expenses: Sales salaries and commissions 12,800 13.50 Advertising 13,200 Miscellaneous selling expense 1,000 2.50 Administrative expenses: Office and officers salaries 7,800 7.00 Supplies 500 1.20 Miscellaneous administrative expense 400 2.40 Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of 35,000 on 20Y8 taxable income will be paid during 20Y8. Regular quarterly cash dividends of 0.20 per share are expected to be declared and paid in March, June, September, and December on 20,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for 22,000 cash in May. Instructions 1. Prepare a budgeted income statement for 20Y8. 2. Prepare a budgeted balance sheet as of December 31,20Y8, with supporting calculations.
Forecast sales volume and sales budget For 2016, Raphael Frame Company prepared the .sales budget that follows. At the end of December 2016, the following unit sales data were reported for the year. Unit Sales 8" 10" Frame 12" 16" Frame East 8,755 3,686 Central 6,510 3,090 West 12,348 5,616 For the year ending December 31, 2017, unit sales are expected to follow die patterns established during the year ending December 31, 2016. The unit selling price for the 8" 10" frame is expected to increase to 17 and die unit selling price for die 12" 16" frame is expected to increase to 32, effective January 1, 2017. Instructions 1. Compute the increase or decrease of actual unit sales for the year ended December 31, 2016, over budget. Place your answers in a columnar table with the following format: Unit Sales, Year Ended 2016 Increase (Decrease) Actual Over Budget Budget Actual Sales Amount Percent 8" 10" Frame: East Central West 12" 16" Frame: East Central West 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 2017, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 2017. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest unit. 2016 Actual Units Percentage Increase (Decrease) 2017 Budgeted Units (rounded) 3. Prepare a sales budget for the year ending December 31, 2017.
Forecast sales volume and sales budget For 20Y6, Raphael Frame Company prepared the sales budget that follows. At the end of December 20Y6, the following unit sales data were reported for the year: Unit Sales 8" 10" Frame 12" 16" Frame East 8,755 3,686 Central 6,510 3,090 West 12,348 5,616 Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y6 Unit Sales Unit Selling Total Product and Area Volume Price Sales 8"10" Frame: East 8,500 16 136,000 Central 6,200 16 99,200 West 12,600 16 201,600 Total 27,300 436,800 12" x 16" Frame: East 3,800 30 5114,000 Central 3,000 30 90,000 West 5,400 30 162,000 Total 12,200 366,000 Total revenue from sales 802,800 For the year ending December 31, 20Y7, unit sales are expected to follow the patterns established during the year ending December 31, 20Y6. The unit selling price for the 8" 10"frame is expected to increase to 17, and the unit selling price for the 12" 16" frame is expected to increase to 32, effective January 1, 20Y7. Instructions 1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y6, over budget. Place your answers in a columnar table with the following format: Unit Sales, Year Ended 20Y6 Increase (Decrease) Actual Over Budget Budget Actual Sales Amount Percent 8" 10" Frame: East Central West 12"16" Frame: East Central West 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y7, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y7. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest unit. 20Y6 Percentage 20Y7 Actual Increase Budgeted Units (Decrease! Units (rounded) 3. Prepare a sales budget for the year ending December 31, 20Y7.