Current Designs 10 (Part Level Submission)The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,440 kayaks during 2020. Each kayak will require 54 pounds of polyethylene powder and afinishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.10 per pound, and the finishing kits cost $250 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run theoven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $14 per hour, and the type II are paid $11 per hour.Manufacturing overhead is budgeted at $390,400 for 2020, broken down as follows.Variable costsIndirect materials$41,280Manufacturing supplies44,720Maintenance and utilities86,000172,000Fixed costsSupervision96,000Insurance14,400Depreciation108,000218,400Total$390,400During the first quarter, ended March 31, 2020, 910 units were actually produced with the following costs.Polyethylene powder$56,024Finishing kitsType I labor227,89025,480Type II labor31,250Indirect materials10,920Manufacturing supplies11,867Maintenance and utilities25,210Supervision22,000Insurance3,600Depreciation27,000Total$441,241v (b)Prepare the flexible budget for manufacturing for the quarter ended March 31, 2020. Assume activity levels of 760, 860, and 910 units. (List variable costs before fixed costs. Round answers to 2 decimal places, e.g. 5,275.25.)CURRENT DESIGNSRotomolded LineManufacturing Flexible Budget ReportFor the Quarter Ended March 31, 2020Units to be Produced760860910Variable CostsPolyethylene Powder451445108454054Finishing Kits190000215000227500Labor - Type I212802408025480Labor - Type II250802838030030Indirect Materials91201032010920Manufacturing Supplies98801118011830Maintenance and Utilities v190002150022750Total Variable Costs319504361544382564Fixed CostsSupervision220002200022000Insurance360036003600Depreciation270002700027000Total Fixed Costs526005260052600Total Costs372104414144435164By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.

Under flexible budget, variable costs varies with the production but fixed cost remains the same as…

Current Designs 10 (Part Level Submission) The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,440 kayaks during 2020. Each kayak will require 54 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.10 per pound, and the finishing kits cost $250 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $14 per hour, and the type II are paid $11 per hour. Manufacturing overhead is budgeted at $390,400 for 2020, broken down as follows. Variable costs Indirect materials $41,280 Manufacturing supplies 44,720 Maintenance and utilities 86,000 172,000 Fixed costs Supervision 96,000 Insurance 14,400 Depreciation 108,000 218,400 Total $390,400 During the first quarter, ended March 31, 2020, 910 units were actually produced with the following costs. Polyethylene powder $56,024 Finishing kits 227,890 Type I labor 25,480 Type II labor 31,250 Indirect materials 10,920 Manufacturing supplies 11,867 Maintenance and utilities 25,210 Supervision 22,000 Insurance 3,600 Depreciation 27,000 $441,241 Total v (b) Prepare the flexible budget for manufacturing for the quarter ended March 31, 2020. Assume activity levels of 760, 860, and 910 units. (List variable costs before fixed costs. Round answers to 2 decimal places, e.g. 5,275.25.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2020 Units to be Produced 760 860 910 Variable Costs Polyethylene Powder 45144 51084 54054 Finishing Kits 190000 215000 227500 Labor - Type I 21280 24080 25480 Labor - Type II 25080 28380 30030 Indirect Materials 9120 10320 10920 Manufacturing Supplies 9880 11180 11830 Maintenance and Utilities v 19000 21500 22750 Total Variable Costs 319504 361544 382564 Fixed Costs Supervision 22000 22000 22000 Insurance 3600 3600 3600 Depreciation 27000 27000 27000 Total Fixed Costs 52600 52600 52600 Total Costs 372104 414144 435164 By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.

Current Designs 10 (Part Level Submission) The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,440 kayaks during 2020. Each kayak will require 54 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.10 per pound, and the finishing kits cost $250 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $14 per hour, and the type II are paid $11 per hour. Manufacturing overhead is budgeted at $390,400 for 2020, broken down as follows. Variable costs Indirect materials $41,280 Manufacturing supplies 44,720 Maintenance and utilities 86,000 172,000 Fixed costs Supervision 96,000 Insurance 14,400 Depreciation 108,000 218,400 Total $390,400 During the first quarter, ended March 31, 2020, 910 units were actually produced with the following costs. Polyethylene powder $56,024 Finishing kits 227,890 Type I labor 25,480 Type II labor 31,250 Indirect materials 10,920 Manufacturing supplies 11,867 Maintenance and utilities 25,210 Supervision 22,000 Insurance 3,600 Depreciation 27,000 $441,241 Total v (b) Prepare the flexible budget for manufacturing for the quarter ended March 31, 2020. Assume activity levels of 760, 860, and 910 units. (List variable costs before fixed costs. Round answers to 2 decimal places, e.g. 5,275.25.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2020 Units to be Produced 760 860 910 Variable Costs Polyethylene Powder 45144 51084 54054 Finishing Kits 190000 215000 227500 Labor - Type I 21280 24080 25480 Labor - Type II 25080 28380 30030 Indirect Materials 9120 10320 10920 Manufacturing Supplies 9880 11180 11830 Maintenance and Utilities v 19000 21500 22750 Total Variable Costs 319504 361544 382564 Fixed Costs Supervision 22000 22000 22000 Insurance 3600 3600 3600 Depreciation 27000 27000 27000 Total Fixed Costs 52600 52600 52600 Total Costs 372104 414144 435164 By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 4CMA: Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold...

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