employee medical insurance of $5 per hour, and employer contributions to Social Security equal to 6.00 percent of direct-labor wages. The cost of employee benefits paid by the company on its employees is treated as a direct-labor cost.Shibby Shades Incorporated has a labor contract that calls for a wage increase to $15.00 per hour on April 1, 20x1.Management expects to have 23,200 frames on hand at December 31, 20x0, and has a policy of carrying an end-of-monthinventory of 100 percent of the following month's sales plus 40 percent of the second following month's sales.These and other data compiled by Demarest are summarized in the following table.Direct-labor hours per unitWage per direct-labor hourJanuary2.0$ 13.00May1.75$ 15.0015,000Estimated unit salesSales price per unit16,000February2.0$ 13.0018,000March1.75$ 13.0014,000April1.75$ 15.0015,000Production overhead:$ 62.00$ 59.50$ 59.50$ 59.50$ 59.50Shipping and handling (per unit sold)$ 4.00$ 4.00unit produced)Purchasing, material handling, and inspection (per$4.00$ 4.00$ 4.00$ 5.00$ 5.00$ 5.00$ 5.00$ 5.00Other production overhead (per direct-labor hour)$ 9.00$ 9.00$ 9.00$ 9.00$ 9.00PR 9-31 (Algo) Part 3: Prepare a production overhead budget...3. Prepare a production overhead budget for each month and for the first quarter.O Answer is complete but not entirely correct.SHIBBY SHADES INCORPORATEDJanuaryProduction Overhead BudgetFor the First Quarter of 20x1MonthFebruaryQuarterMarchShipping and handling$Purchasing, material handling, and inspectionOther overhead64,000 $ 72,000 $80,00056,000 $192,00090,00070,000 ×240,000288,000x324,000220,500 x832,500 xTotal production overhead$432,000 $ 486,000$346,500$ 1,264,500

Name: employee medical insurance of $5 per hour, and employer contributions
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Description: employee medical insurance of $5 per hour, and employer contributions to Social Security equal to 6.00 percent of direct-labor wages. The cost of employee benefits paid by the company on its employees is treated as a direct-labor cost.Shibby Shades

The budget is prepared to estimate the requirements for the period. The production budget is…

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Accounting

These and other data compiled by Demarest are summarized in the following table. Direct-labor hours per unit Wage per direct-labor hour Estimated unit sales Sales price per unit Production overhead: Shipping and handling (per unit sold) Purchasing, material handling, and inspection (per unit produced) Other production overhead (per direct-labor hour) January 2.0 $ 13.00 February 2.0 $ 13.00 16,000 18,000 $ 62.00 $ 59.50 March 1.75 $ 13.00 14,000 $ 59.50 April 1.75 $ 15.00 15,000 $ 59.50 May 1.75 $ 15.00 15,000 $ 59.50 $ 4.00 $ 4.00 $ 4.00 $4.00 $ 4.00 $ 5.00 $5.00 $5.00 $ 5.00 $ 5.00 $ 9.00 $ 9.00 $ 9.00 $ 9.00 $ 9.00 PR 9-31 (Algo) Part 3: Prepare a production overhead budget... 3. Prepare a production overhead budget for each month and for the first quarter.

These and other data compiled by Demarest are summarized in the following table. Direct-labor hours per unit Wage per direct-labor hour Estimated unit sales Sales price per unit Production overhead: Shipping and handling (per unit sold) Purchasing, material handling, and inspection (per unit produced) Other production overhead (per direct-labor hour) January 2.0 $ 13.00 February 2.0 $ 13.00 16,000 18,000 $ 62.00 $ 59.50 March 1.75 $ 13.00 14,000 $ 59.50 April 1.75 $ 15.00 15,000 $ 59.50 May 1.75 $ 15.00 15,000 $ 59.50 $ 4.00 $ 4.00 $ 4.00 $4.00 $ 4.00 $ 5.00 $5.00 $5.00 $ 5.00 $ 5.00 $ 9.00 $ 9.00 $ 9.00 $ 9.00 $ 9.00 PR 9-31 (Algo) Part 3: Prepare a production overhead budget... 3. Prepare a production overhead budget for each month and for the first quarter.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter3: Accounting For Labor

Section: Chapter Questions

Problem 4E: Peggy Nolan earns 20 per hour for up to 300 units of production per day. If she produces more than...

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Peggy Nolan earns 20 per hour for up to 300 units of production per day. If she produces more than 300 units per day, she will receive an additional piece rate of .5333 per unit. Assume that her hours worked and pieces finished for the week just ended were as follows: a. Determine Nolans earnings for each day and for the week. (Round piece-rate computations to the nearest whole dollar.) b. Prepare the journal entry to distribute the payroll, assuming that any make-up guarantees are charged to Factory Overhead.
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