Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner’s master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer’s share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company’s union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 25 percent of the following month’s projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 37,000 34,600 39,600 40,400 Sales price per unit $80 $80 $76 $76 Direct labor hours per unit 2.70 2.70 2.40 2.40 Direct labor hourly rate $17 $17 $18 $18 Direct materials cost per unit $9 $9 $9 $9 Required: Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit. 1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year. Question Content Area a. Production budget in units: Greiner CompanyProduction Budget (units)For the First Quarter of the Coming Year January February March Total Unit sales fill in the blank 8753eeff4fac036_1 fill in the blank 8753eeff4fac036_2 fill in the blank 8753eeff4fac036_3 fill in the blank 8753eeff4fac036_4 Desired ending inventory fill in the blank 8753eeff4fac036_5 fill in the blank 8753eeff4fac036_6 fill in the blank 8753eeff4fac036_7 fill in the blank 8753eeff4fac036_8 Total units required fill in the blank 8753eeff4fac036_9 fill in the blank 8753eeff4fac036_10 fill in the blank 8753eeff4fac036_11 fill in the blank 8753eeff4fac036_12 Less: Beginning inventory fill in the blank 8753eeff4fac036_13 fill in the blank 8753eeff4fac036_14 fill in the blank 8753eeff4fac036_15 fill in the blank 8753eeff4fac036_16 Units produced fill in the blank 8753eeff4fac036_17 fill in the blank 8753eeff4fac036_18 fill in the blank 8753eeff4fac036_19 fill in the blank 8753eeff4fac036_20 Question Content Area b. Direct labor budget in hours: Round your answers to two decimal places, if required. Greiner CompanyDirect Labor Budget (hours)For the First Quarter of the Coming Year January February March Total Units produced fill in the blank 29f874018032fef_1 fill in the blank 29f874018032fef_2 fill in the blank 29f874018032fef_3 fill in the blank 29f874018032fef_4 Direct labor hours per unit fill in the blank 29f874018032fef_5 fill in the blank 29f874018032fef_6 fill in the blank 29f874018032fef_7 Total labor budget (hours) fill in the blank 29f874018032fef_8 fill in the blank 29f874018032fef_9 fill in the blank 29f874018032fef_10 fill in the blank 29f874018032fef_11 Question Content Area c. Direct materials cost budget: Greiner CompanyDirect Materials Cost BudgetFor the First Quarter of the Coming Year January February March Total Units produced fill in the blank 99a9c7023fcffd0_1 fill in the blank 99a9c7023fcffd0_2 fill in the blank 99a9c7023fcffd0_3 fill in the blank 99a9c7023fcffd0_4 Cost per unit $fill in the blank 99a9c7023fcffd0_5 $fill in the blank 99a9c7023fcffd0_6 $fill in the blank 99a9c7023fcffd0_7 $fill in the blank 99a9c7023fcffd0_8 Total direct materials $fill in the blank 99a9c7023fcffd0_9 $fill in the blank 99a9c7023fcffd0_10 $fill in the blank 99a9c7023fcffd0_11 $fill in the blank 99a9c7023fcffd0_12

Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner’s master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer’s share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company’s union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 25 percent of the following month’s projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 37,000 34,600 39,600 40,400 Sales price per unit $80 $80 $76 $76 Direct labor hours per unit 2.70 2.70 2.40 2.40 Direct labor hourly rate $17 $17 $18 $18 Direct materials cost per unit $9 $9 $9 $9 Required: Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit. 1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year. Question Content Area a. Production budget in units: Greiner CompanyProduction Budget (units)For the First Quarter of the Coming Year January February March Total Unit sales fill in the blank 8753eeff4fac036_1 fill in the blank 8753eeff4fac036_2 fill in the blank 8753eeff4fac036_3 fill in the blank 8753eeff4fac036_4 Desired ending inventory fill in the blank 8753eeff4fac036_5 fill in the blank 8753eeff4fac036_6 fill in the blank 8753eeff4fac036_7 fill in the blank 8753eeff4fac036_8 Total units required fill in the blank 8753eeff4fac036_9 fill in the blank 8753eeff4fac036_10 fill in the blank 8753eeff4fac036_11 fill in the blank 8753eeff4fac036_12 Less: Beginning inventory fill in the blank 8753eeff4fac036_13 fill in the blank 8753eeff4fac036_14 fill in the blank 8753eeff4fac036_15 fill in the blank 8753eeff4fac036_16 Units produced fill in the blank 8753eeff4fac036_17 fill in the blank 8753eeff4fac036_18 fill in the blank 8753eeff4fac036_19 fill in the blank 8753eeff4fac036_20 Question Content Area b. Direct labor budget in hours: Round your answers to two decimal places, if required. Greiner CompanyDirect Labor Budget (hours)For the First Quarter of the Coming Year January February March Total Units produced fill in the blank 29f874018032fef_1 fill in the blank 29f874018032fef_2 fill in the blank 29f874018032fef_3 fill in the blank 29f874018032fef_4 Direct labor hours per unit fill in the blank 29f874018032fef_5 fill in the blank 29f874018032fef_6 fill in the blank 29f874018032fef_7 Total labor budget (hours) fill in the blank 29f874018032fef_8 fill in the blank 29f874018032fef_9 fill in the blank 29f874018032fef_10 fill in the blank 29f874018032fef_11 Question Content Area c. Direct materials cost budget: Greiner CompanyDirect Materials Cost BudgetFor the First Quarter of the Coming Year January February March Total Units produced fill in the blank 99a9c7023fcffd0_1 fill in the blank 99a9c7023fcffd0_2 fill in the blank 99a9c7023fcffd0_3 fill in the blank 99a9c7023fcffd0_4 Cost per unit $fill in the blank 99a9c7023fcffd0_5 $fill in the blank 99a9c7023fcffd0_6 $fill in the blank 99a9c7023fcffd0_7 $fill in the blank 99a9c7023fcffd0_8 Total direct materials $fill in the blank 99a9c7023fcffd0_9 $fill in the blank 99a9c7023fcffd0_10 $fill in the blank 99a9c7023fcffd0_11 $fill in the blank 99a9c7023fcffd0_12

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 38P: Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven,...

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Question Content Area

a. Production budget in units:

Greiner CompanyProduction Budget (units)For the First Quarter of the Coming Year

	January	February	March	Total
Unit sales	fill in the blank 8753eeff4fac036_1	fill in the blank 8753eeff4fac036_2	fill in the blank 8753eeff4fac036_3	fill in the blank 8753eeff4fac036_4
Desired ending inventory	fill in the blank 8753eeff4fac036_5	fill in the blank 8753eeff4fac036_6	fill in the blank 8753eeff4fac036_7	fill in the blank 8753eeff4fac036_8
Total units required	fill in the blank 8753eeff4fac036_9	fill in the blank 8753eeff4fac036_10	fill in the blank 8753eeff4fac036_11	fill in the blank 8753eeff4fac036_12
Less: Beginning inventory	fill in the blank 8753eeff4fac036_13	fill in the blank 8753eeff4fac036_14	fill in the blank 8753eeff4fac036_15	fill in the blank 8753eeff4fac036_16
Units produced	fill in the blank 8753eeff4fac036_17	fill in the blank 8753eeff4fac036_18	fill in the blank 8753eeff4fac036_19	fill in the blank 8753eeff4fac036_20

Question Content Area

b. Direct labor budget in hours: Round your answers to two decimal places, if required.

Greiner CompanyDirect Labor Budget (hours)For the First Quarter of the Coming Year

	January	February	March	Total
Units produced	fill in the blank 29f874018032fef_1	fill in the blank 29f874018032fef_2	fill in the blank 29f874018032fef_3	fill in the blank 29f874018032fef_4
Direct labor hours per unit	fill in the blank 29f874018032fef_5	fill in the blank 29f874018032fef_6	fill in the blank 29f874018032fef_7
Total labor budget (hours)	fill in the blank 29f874018032fef_8	fill in the blank 29f874018032fef_9	fill in the blank 29f874018032fef_10	fill in the blank 29f874018032fef_11

Question Content Area

c. Direct materials cost budget:

Greiner CompanyDirect Materials Cost BudgetFor the First Quarter of the Coming Year

	January	February	March	Total
Units produced	fill in the blank 99a9c7023fcffd0_1	fill in the blank 99a9c7023fcffd0_2	fill in the blank 99a9c7023fcffd0_3	fill in the blank 99a9c7023fcffd0_4
Cost per unit	$fill in the blank 99a9c7023fcffd0_5	$fill in the blank 99a9c7023fcffd0_6	$fill in the blank 99a9c7023fcffd0_7	$fill in the blank 99a9c7023fcffd0_8
Total direct materials	$fill in the blank 99a9c7023fcffd0_9	$fill in the blank 99a9c7023fcffd0_10	$fill in the blank 99a9c7023fcffd0_11	$fill in the blank 99a9c7023fcffd0_12

Question Content Area

d. Sales budget: Round unit selling price amounts to the nearest cent and use the same for subsequent requirements.

Greiner CompanySales Budget (dollars)For the First Quarter of the Coming Year

	January	February	March	Total
Unit sales	fill in the blank d9e1730b7039fd4_1	fill in the blank d9e1730b7039fd4_2	fill in the blank d9e1730b7039fd4_3	fill in the blank d9e1730b7039fd4_4
Unit selling price	$fill in the blank d9e1730b7039fd4_5	$fill in the blank d9e1730b7039fd4_6	$fill in the blank d9e1730b7039fd4_7	$fill in the blank d9e1730b7039fd4_8
Total sales revenue	$fill in the blank d9e1730b7039fd4_9	$fill in the blank d9e1730b7039fd4_10	$fill in the blank d9e1730b7039fd4_11	$fill in the blank d9e1730b7039fd4_12

Question Content Area

2. Calculate the total budgeted contribution margin for Greiner Company by month and in total for the first quarter of the coming year. (CMA adapted)

Greiner CompanyBudgeted Contribution MarginFor the First Quarter of the Coming Year

	January	February	March	Total
Sales revenue		$fill in the blank 20fa34f67fe7056_2	$fill in the blank 20fa34f67fe7056_3	$fill in the blank 20fa34f67fe7056_4
Direct labor cost	fill in the blank 20fa34f67fe7056_5	fill in the blank 20fa34f67fe7056_6	fill in the blank 20fa34f67fe7056_7	fill in the blank 20fa34f67fe7056_8
Materials cost	fill in the blank 20fa34f67fe7056_9	fill in the blank 20fa34f67fe7056_10	fill in the blank 20fa34f67fe7056_11	fill in the blank 20fa34f67fe7056_12
Contribution margin

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	January	February	March	April
Estimated unit sales	37,000	34,600	39,600	40,400
Sales price per unit	$80	$80	$76	$76
Direct labor hours per unit	2.70	2.70	2.40	2.40
Direct labor hourly rate	$17	$17	$18	$18
Direct materials cost per unit	$9	$9	$9	$9