2 9 - = FinalProject_Fall2023-1 (3) - Compatibility. Search Draw Design Layout References Mailings Review View Help Table Design Layout 9. Annuar estimated imanufacturing overmead information is given in Ladie 3. Overneau Is allocated based direct labor hours. Estimated annual direct labor hours are 572,870. Calculate a predetermined OH rate (round to two decimal places if needed). Use this rate when you need to apply OH. 4. Table 4 gives you the information for the last six months on the actual manufacturing overhead cost and machine hours. Using the high/low method of cost estimation and this information, determine the fixed and variable portions of the manufacturing overhead cost. (You will need this information to complete Table 5). Machine hours have been determined as the best cost driver for manufacturing OH. It takes one machine hour to make 200 cases of snack bars. 5 . Table 5 is where you will list all your production cost (DM, DL, MOH), separated into their fixed and variable components. Note this table wants variable cost per unit and annual fixed cost. 6. Cost-Volume-Profit (CVP) Relationships a. Selling Price: You sell a case of cookies for $22. b. Breakeven point: Calculate the annual breakeven point using manufacturing cost. Be sure to include the fixed component of mixed cost in your fixed costs and the variable component in the variable cost. Show your breakeven in Sales units and in Sales Dollars c. Profit Planning: Determine the number of units you must sell to make an annual gross profit using 3 assumptions concerning your gross profit. both in sales units and sales dollars. Text Predictions: On 27 Accessibility Unavailable Focus Q Search w . . . ". . . . . . . . . . . .. .. . . . . . . . . . ... .... .... f5 16 10 1 prt sc delet % ** 4 5 6 backs ROff 48 9 - 0 - Search jincy jose FinalProject_Fall2023-1 (3) - Compatibility... Table Design Layout Comm Insert Draw Design Layout References Mailings Review View Help i. Aggressive Profit ($34, 125,000) ii. Conservative Profit ($11,750,000) iii. Aver Profit ($23,067,600) 7. Budgeting: a. Create a sales budget using the information for earning an average gross profit for the year. You will break the budget down into the four quarters for the year. (Sales tend to be consistent each quarter, you can only sale a whole unit so round-up if necessary) Use table 6 to complete the sales budget. b. Create a production budget for each quarter of the year (keep it in quarters, you do not need to break it down by month). You desire to keep 10%% of next quarter's sales in ending inventory. Sales for Qur 1 the following year (year 2) are expected to be 475,000 cases of snack bars. There is not any beginning finished goods inventory for quarter one this year. Use table 7 to complete the production budget. 1449 words X Text Predictions: On ? Accessibility: Unavailable FOCUS Q Search W 99+ O hp 14 01 19 144 10 sort sC delete hom #. $ 3 & * 4 5 6 8 backspace E R" - = FinalProject_Fall2023-1 (3) - Compatibility. Search jinc Draw Design Layout References Mailings Review View Help Table Design Layout 8. Running quarter two -- Weighted-average process costing. Table 8 presents the information for the packaging department. Complete the questions under table 8. 9. Actuals are in for quarter two. You sold 3% less units than you budgeted for (round to a whole unit), but price per unit was $22.50. a. Calculate revenue b. Compute the cost of goods sold (total and per unit) before adjusting for actual OH cost. The beginning finished goods inventory for Q2 was 43,000 units at a total cost of $434,300. 10. Actual chocolate usage for quarter one was 41,625,000 grams at a price of $0.0082 per gram. Actual equivalent units of production (cases of snack bars) completed through the second process (where the chocolate is added) was 462.000. Calculate the direct materials variances for the chocolate (price, usage, and total) and indicate if these variances are favorable or unfavorable. 1 1. Actual direct labor hours for the quarter were 139,810 at an average rate of $18.15 per hour. For actual production. you expected to use 140.490 direct labor hours. Calculate the direct labor variances (rate, efficiency and total) and indicate if these variances are favorable or unfavorable. 12. For October, you have received a special offer of 8,000 cases of the snack bars at a total price of $80.000. Your current production capacity per month is 200,000 cases. At the end of September finished goods ending inventory was 24.500 cases. The event organizers ordering these snack bars have requested a special Halloween themed wrapping that will cost $1.800 for you to set-up. Should you accept or reject this offer? Why? Text Predictions: On ?Accessibility: Unavailable Focus Q Search w (99+ hp . . . . 4+ 19 : 144 10 "prt sc deleteF2 9 - = FinalProject_Fall2023-1 (3) - Compatibility. Search jincy jo Design Layout References Mailings Review View Help Table Design Layout cor Table 1: Direct Materials Quantity per Total per Material unit Cost unit Peanut butter candy 240 grams $0.0065 $1.56 Chocolate 90 grams 0.0080 0.72 Packaging 1 1 box 0.2000 0.20 Packaging 2 30 wrappers 0.0250 0.75 Total cost $3.23 Table 2: Direct Labor Total Job description Hours per unit Rate cost Processor 0.20 $18.00 $3.60 Baker 0.05 18.00 0.90 Packager 0.06 18.00 1.08 Total cost $5.58 Table 3: YEARLY OVERHEAD COSTS ords x Text Predictions: On ? Accessibility Unavailable Focus Q Search W 99+ hp 19 144 DRI prt sc delete 4 5 & - *Table 2: Direct Labor Total Job description Hours per unit Rate cost Processor 0.20 $18.00 $3.60 Baker 0.05 18.00 0.90 Packager 0.06 18.00 1.08 Total cost $5.58 Table 3: YEARLY OVERHEAD COSTS Cost description Amount Indirect material $129,600 Indirect labor 144,000 Machine Maintenance 64,000 Electricity 68,000 Depreciation 97,200 Quality testing 156,000 Total $658.800 rds x Text Predictions: On Accessibility Unavailable Q Search W 99+ .. . .. .... . . .. . . . . . . . . . . . ee eeer cercere Peresce f5 16 10 8 144 f10 DRI pr % & 4 5 6 8 R T Y UF 9 - = FinalProject_Fall2023-1 (3) - Compatibility. 9 Search Mailings Review Help Table Design it Draw Design Layout References View Layout Table 4 - Actual Overhead cost for the last six months Machine hours OH Cost Month 1 650 $53,200 Month 2 700 $54,700 Month 3 680 $54,100 Month 4 690 $54,400 Month 5 660 $53,600 Month 6 670 $53,800 *200 cases produced per machine hour Complete any calculations here: 9 words x Text Predictions: On *?Accessibility: Unavailable D, Focus Search hp 13 (5 16 8 9-144 10 prt sc de $ & 4 6 8 9 bacHe 9 - ( = FinalProject_Fall2023-1 (3) - Compatibility.. search Draw Design Layout References Mailings Review View Help Table Design Layout ert Table 5: Variable and Fixed Costs COSTS Description VARIABLE Cost per unit FIXED Cost per Year TOTAL If a cost is mixed, put the fixed amount in the fixed column and the variable amount in the variable column. CVP Calculations: 149 words x Text Predictions: On ? Accessibility: Unavailable Focus Q Search w 199+ hp 13 16 10 19 144 DDI prt sc de $ 3. % & 5 6 8 9Search Save @ Off g - 0 = FinalProject_Fall2023-1 (3) - Compatibility.. Layout Home Insert Draw Design Layout References Mailings Review View Help Table Design Table 6 - Sales Budget (Q1, Q2, Q3, Q4) H Table 7 - Production Budget Qtr 1 Qtr 2 Qtr 3 Qtr 4 12 1449 words x Text Predictions: On ? Accessibility: Unavailable FOC lear Q Search W 199+ hp . . . .jincy jos FinalProject_Fall2023-1 (3) - Compatibility... Search com Table Design raw Design Layout References Mailings Review View Help Table 7 - Production Budget Qtr 1 Qtr 2 Otr 3 Otr 4 ds X Text Predictions: On 7? Accessibility: Unavailable D, Focus 99+ Search hp 141 DDI 112 Port sc delete $ % & * 4 5 6 backspaceSearch jincy jos oSave ( off) Fe " - ( = FinalProject_Fall2023-1 (3) - Compatibility. Layout Com Insert Draw Design Layout References Mailings Review View Help Table Design Process Costing - Packaging Department Direct materials are auwed 90% at the beginning of the process and the remaining 10% are added when the snack bars are 80% complete with the packaging process. Direct labor and overhead are added evenly throughout the process. Table 8 - Unit and cost information Cost Physical Units Transferred Direct Direct Overhead -in Materials Labor Beg WIP 24,000 (80% complete) $171,000 $18,750 $21,194 $1,656 Transferred |420,000 $3,345,480 In End WIP 26,000 (75% complete) Added during Qtr 2: Direct Materials -- $404,994 Direct Labor - 26,000 hrs @ $18.50 per hour Overhead - OH is applied based on predetermined OH rate and actual DL hours 8 of 12 1449 words X Text Predictions: On Accessibility: Unavailable Focus 33OF Clear Q Search 99+ hp 16 10 144 prt sc delete # $ 3 % 5 & 4 6 backspace E RSearch Off He ? ~ = FinalProject_Fall2023-1 (3) - Compatibility. View Help Layout Insert Draw Design Layout It References Mailings Review Table Design Table 13 - Actual OH cost for Quarter 2 Description Cost $32,400 Indirect Materials Indirect Labor $37,000 Machine Maintenance $16,800 Electricity $17,460 Depreciation $24,300 Quality Testing $39,700 Amount of applied OH: Amount of actual OH: IT Under or Over- Applied Amount: 12 1449 words X Text Predictions: On ? Accessibility: Unavailable [ Focus B lear Search 99+ C hp 13 14 101 6 + 19 144 prt sc # 3 $ 4 5 & 6 O ba E R P D