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Corsair uses an activity-based system and classifies overhead into three activity pools: Setup, Processing and Inspection. Activity rates for these activities are $100 per setup hour, $5 per machine hour, and $16 per inspection hour, respectively. Other information follows: Cost driver information Crystal Series Diamond Series Number of units per batch Setup time per batch Inspection time per batch 20 15 1.5 hours 1.75 hours 0.5 hour 0.6 hour Non-manufacturing fixed costs for August was $36,000, of which half are salaries. Salaries are expected to increase 5% in September. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue. REQUIRED: Prepare the following for September: Revenues budget Production budget Direct materials purchases budget (in units and dollars) а. b. C.

Corsair uses an activity-based system and classifies overhead into three activity pools: Setup, Processing and Inspection. Activity rates for these activities are $100 per setup hour, $5 per machine hour, and $16 per inspection hour, respectively. Other information follows: Cost driver information Crystal Series Diamond Series Number of units per batch Setup time per batch Inspection time per batch 20 15 1.5 hours 1.75 hours 0.5 hour 0.6 hour Non-manufacturing fixed costs for August was $36,000, of which half are salaries. Salaries are expected to increase 5% in September. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue. REQUIRED: Prepare the following for September: Revenues budget Production budget Direct materials purchases budget (in units and dollars) а. b. C.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 2PB: Five Card Draw manufactures and sells 10,000 units of Aces, which retails for $200, and 8,000 units...
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Corsair Gaming Company manufactures two ranges of computer cases, the Crystal Series and the Diamond Series. They are both made of plastic with metal frames, but the Diamond Series is larger. Information for the two ranges for the month of September is given in the following tables: Input prices Direct materials $4 per kilogram $6 per kilogram $20 per direct manufacturing labour hour Plastic Metal Direct manufacturing labour Input quantities per unit of output Crystal Series Diamond Series Direct materials Plastic 2 kilograms 0.5 kilogram 3 kilograms 1 kilogram Metal Direct manufacturing labour-hours (DMLH) 3 hours 5 hours Machine hours (MH) 10 МН 18 мн Inventory information, direct materials Beginning inventory Target ending inventory Cost of beginning inventory Plastic 125 kilograms 190 kilograms $950 Metal 30 kilograms 28 kilograms $180 Sales and inventory information, finished goods Crystal Series Diamond Series Expected sales in units Selling price Target ending inventory in units Beginning inventory in units Beginning inventory in dollars 500 300 $160 $250 35 15 15 30 $1,500 $5,580 Corsair accounts for direct materials and finished goods inventory using a FIFO cost
Transcribed Image Text:Corsair Gaming Company manufactures two ranges of computer cases, the Crystal Series and the Diamond Series. They are both made of plastic with metal frames, but the Diamond Series is larger. Information for the two ranges for the month of September is given in the following tables: Input prices Direct materials $4 per kilogram $6 per kilogram $20 per direct manufacturing labour hour Plastic Metal Direct manufacturing labour Input quantities per unit of output Crystal Series Diamond Series Direct materials Plastic 2 kilograms 0.5 kilogram 3 kilograms 1 kilogram Metal Direct manufacturing labour-hours (DMLH) 3 hours 5 hours Machine hours (MH) 10 МН 18 мн Inventory information, direct materials Beginning inventory Target ending inventory Cost of beginning inventory Plastic 125 kilograms 190 kilograms $950 Metal 30 kilograms 28 kilograms $180 Sales and inventory information, finished goods Crystal Series Diamond Series Expected sales in units Selling price Target ending inventory in units Beginning inventory in units Beginning inventory in dollars 500 300 $160 $250 35 15 15 30 $1,500 $5,580 Corsair accounts for direct materials and finished goods inventory using a FIFO cost
Corsair uses an activity-based system and classifies overhead into three activity pools: Setup, Processing and Inspection. Activity rates for these activities are $100 per setup hour, $5 per machine hour, and $16 per inspection hour, respectively. Other information follows: Cost driver information Crystal Series Diamond Series Number of units per batch Setup time per batch Inspection time per batch 20 15 1.5 hours 1.75 hours 0.5 hour 0.6 hour Non-manufacturing fixed costs for August was $36,000, of which half are salaries. Salaries are expected to increase 5% in September. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue. REQUIRED: Prepare the following for September: Revenues budget Production budget Direct materials purchases budget (in units and dollars) Direct manufacturing labour budget Manufacturing overhead budget Unit costs of ending finished good inventory а. b. с. d. е. f.
Transcribed Image Text:Corsair uses an activity-based system and classifies overhead into three activity pools: Setup, Processing and Inspection. Activity rates for these activities are $100 per setup hour, $5 per machine hour, and $16 per inspection hour, respectively. Other information follows: Cost driver information Crystal Series Diamond Series Number of units per batch Setup time per batch Inspection time per batch 20 15 1.5 hours 1.75 hours 0.5 hour 0.6 hour Non-manufacturing fixed costs for August was $36,000, of which half are salaries. Salaries are expected to increase 5% in September. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue. REQUIRED: Prepare the following for September: Revenues budget Production budget Direct materials purchases budget (in units and dollars) Direct manufacturing labour budget Manufacturing overhead budget Unit costs of ending finished good inventory а. b. с. d. е. f.
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