11.5 points Finished Components c12 DS57 Requirements for each finished component: Raw Material 1 10 pounds 8 pounds Raw Material 2 Q 4 pounds Raw Material 3 2 pounds 1 pound Direct labor 2 hours 3 hours Product information: Sales price $ 168 $s 250 Sales (units) 12,000 12,000 Estimated beginning inventory (units) 400 200 Desired ending inventory (units) 308 208 Direct Materials Information Raw Material 1Raw Material 2Raw Material 3 Cost per pound $6 $ 4.50 $ 0.58 Estimated beginning inventory in pounds 3,500 1,200 500 Desired ending inventory in pounds 4,100 1,400 2,000 The firm expects the average wage rate to be $25 per hour in 20X1. Spring Manufacturing uses direct labor hours to apply overhead. Each year the firm determines the overhead application rate for the year based on budgeted direct labor hours for the year. The firm maintains negligible Work-in-Process Inventory and expects the cost per unit for both beginning and ending inventories of finished products to be identical. Factory Overhead Information Indirect materialsvariable $ 15,000 Miscellaneous supplies and toolsvariable 5,400 Indirect laborvariable 45,000 Supervisionfixed 128,000 Payroll taxes and fringe benefits-variable 260,000 Maintenance costsfixed 18,000 Maintenance costsvariable 10,050 Depreciationfixed 71,340 Heat, Light, and powerfixed 43,408 Heat, Light, and powervariable 11,000 Total $ 599,19 Return to question Selling and Administrative Expense Information Advertising $ 61, 090 Sales salaries 240, 000 Travel and entertainment 55, 000 Depreciation-warehouse 4,900 Office salaries 60,000 Executive salaries 300, 000 Supplies 3,800 Depreciation-office 6,300 Total $ 731, 000 The effective income tax rate for the company is 50%.3 nS points Note: Round "Cost per pound" to 2 decimal places. Raw material (RM) 1: Budgeted production 11,900 9,050 Pounds per unit o 0@ 2@ RM 1 needed for production 119,000 72,400 191,400 Add: Desired ending inventory (pounds) 4,000 Total RM 1 needed (pounds) 196,400 Less: Beginning inventory (pounds) 6 3,000 Required purchases of RM 1 (pounds) 192,400 'Cost per pound o 2.003 Budgeted purchases, RM 1 384,800 Raw material (RM) 2: Budgeted production 11,900@ 9,050@) Pounds per unit o o@ 49 RM 2 needed for production 0 36,200 36,200 Add: Desired ending inventory (pounds) 1,000 Total RM 2 needed (pounds) 37,200 Less: Beginning inventory (pounds) 6 1,500) Required purchases of RM 2 (pounds) 35,700 'Cost per pound o 250 89,250 Budgeted purchases, RM 2 meme rier) Budgeted production 11,900 V 9,050 X Pounds per unit V 2 V 1 V RM 3 needed for production 23,800 9,050 32,850 Add: Desired ending inventory (pounds) V 1,500 X Total RM 3 needed (pounds) 34,350 Less: Beginning inventory (pounds) V 1,000 X Required purchases of RM 3 (pounds) 33,350 Cost per pound $ 0.50 Budgeted purchases, RM 3 $ 16,675 Return to question 3 The effective income tax rate for the company is 50%. X Answer is not complete. 11.5 Complete this question by entering your answers in the tabs below. points Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare the Direct labor budget for 20X1. SPRING MANUFACTURING COMPANY Direct Labor Budget For the Year 20X1 C12 D57 Total Budgeted production 11,900 9,050 X Direct labor hours per unit 3V Total direct labor hours needed 23,800 27,150 50,950 Hourly wage rate V $ 25 Budgeted direct labor costs $ 1,273,750