|Units Price Accel Active 45,000|s225 Product Accel Regular 75,000|S1sS Expected Target Inventories Product Accel Active Accel Regular January 1, 2019 December 31, 2019 9,000 12,000 17,000 25,000 The following direct materials are expected to be used in the two products: Material Used per Unit Direct Material Unit Accel Active Accel Regular One pound Two Three pound 4 2 pound 2 Projected data for 2019 with respect to direct materials are as follows: Direct Material Expected Purchase PriceExpected Inventories Target Inventories (January 1, 2019) (December 31, 2019) One S15 27,000 lb 35,000 lb Two $7 30,000 lb 35,000 lb Three $4 4,000 lb 7,000 lb Projected direct labor requirements and rates for 2019 are as follows: Product Hours Per Unit Rate Per Hour Accel Active Accel Regular SI8 4 3 SIs Manufacturing overhead is allocated at the rate of $22 per direct manufacturing labor-hour. Required: Based on the preceding projections and budget requirements for Accel Active and Accel Regular, prepare the following budgets for 2019: 4. Direct materials purchases budget (in dollars) 5. Direct manufacturing labor budget (in dollars) 6. Direct manufacturing overhead budget (in dollars)

|Units Price Accel Active 45,000|s225 Product Accel Regular 75,000|S1sS Expected Target Inventories Product Accel Active Accel Regular January 1, 2019 December 31, 2019 9,000 12,000 17,000 25,000 The following direct materials are expected to be used in the two products: Material Used per Unit Direct Material Unit Accel Active Accel Regular One pound Two Three pound 4 2 pound 2 Projected data for 2019 with respect to direct materials are as follows: Direct Material Expected Purchase PriceExpected Inventories Target Inventories (January 1, 2019) (December 31, 2019) One S15 27,000 lb 35,000 lb Two $7 30,000 lb 35,000 lb Three $4 4,000 lb 7,000 lb Projected direct labor requirements and rates for 2019 are as follows: Product Hours Per Unit Rate Per Hour Accel Active Accel Regular SI8 4 3 SIs Manufacturing overhead is allocated at the rate of $22 per direct manufacturing labor-hour. Required: Based on the preceding projections and budget requirements for Accel Active and Accel Regular, prepare the following budgets for 2019: 4. Direct materials purchases budget (in dollars) 5. Direct manufacturing labor budget (in dollars) 6. Direct manufacturing overhead budget (in dollars)

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 6PA: Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of...

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