Farkas Shoes, a high-end shoe manufacturer, produces two lines of shoes for women. The shoes are identical
Question:
Selected budget information for February follows:
Basic Elaborate Total
Units ........................... 30,000 ............. 2,250 ................ 32,250
Direct material costs ...... $390,000 ........... 63,000 .............. $453,000
Budgeted conversion costs for each operation for February follow:
Operation 1 ........................ $145,125
Operation 2 ........................... 58,050
Operation 3 ............................. 4,275
Operation 4 .......................... $67,725
Operation 5 ........................... 13,500
Operation 6 ............................. 2,025
Required
1. Using budgeted pairs of shoes as the denominator, calculate the budgeted conversion cost rates for each of the six operations.
2. Using the information in requirement 1, calculate the budgeted cost of goods manufactured for the two February work orders.
3. Based on the two representative work orders for February, calculate the budgeted cost of each pair of shoes.
Step by Step Answer:
Cost Accounting A Managerial Emphasis
ISBN: 978-0133138443
7th Canadian Edition
Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham