Bonita Sleep Systems manufactures nylon mesh hammocks for a chain of retail outlets located throughout the southeast. The company plans to manufacture and sell 28,000 hammocks during the fourth quarter. Overhead costs are expected to include: Variable indirect materials $ 4.75 per hammock Variable indirect labor $ 11.25 per hammock Other variable overhead $ 3.25 per hammock Salaries $ 50,000 per quarter Insurance $ 6,000 per quarter Depreciation $ 25,000 per quarter Prepare Bonita's manufacturing overhead budget for the fourth quarter.
Bonita Sleep Systems manufactures nylon mesh hammocks for a chain of retail outlets located throughout the southeast. The company plans to manufacture and sell 28,000 hammocks during the fourth quarter. Overhead costs are expected to include: Variable indirect materials $ 4.75 per hammock Variable indirect labor $ 11.25 per hammock Other variable overhead $ 3.25 per hammock Salaries $ 50,000 per quarter Insurance $ 6,000 per quarter Depreciation $ 25,000 per quarter Prepare Bonita's manufacturing overhead budget for the fourth quarter.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Bonita Sleep Systems manufactures nylon mesh hammocks for a chain of retail outlets located throughout the southeast. The company plans to manufacture and sell 28,000 hammocks during the fourth quarter.
|
Variable indirect materials
|
$ | 4.75 | per hammock | ||||
|
Variable indirect labor
|
$ | 11.25 | per hammock | ||||
|
Other variable overhead
|
$ | 3.25 | per hammock | ||||
|
Salaries
|
$ | 50,000 | per quarter | ||||
|
Insurance
|
$ | 6,000 | per quarter | ||||
|
|
$ | 25,000 | per quarter |
Prepare Bonita's manufacturing overhead budget for the fourth quarter.
Transcribed Image Text:4th Quarter
Variable overhead
24
Fixed overhead
24
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