Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for

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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 2013. 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 at December 31, 2012, and has a policy of carrying 35 percent of the following month's projected sales in inventory.
Greiner Company makes and sells high-quality glare filters for microcomputer

Required:
1. Prepare the following monthly budgets for Greiner Company for the first quarter of 2013. Be sure to show supporting calculations.
a. Production budget in units
b. Direct labor budget in hours
c. Direct materials cost budget
d. Sales budget
2. Calculate the total budgeted contribution margin for Greiner Company by month and in total for the first quarter of 2013. Be sure to show supporting calculations.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Related Book For  book-img-for-question

Cornerstones of Cost Management

ISBN: 978-1111824402

2nd edition

Authors: Don R. Hansen, Maryanne M. Mowen

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