E6-29 (similar to) E Question Help Alcott Company makes and sells artistic frames for pictures of...
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E6-29 (similar to) E Question Help Alcott Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron Brandy, the controller, is responsible for preparing Alcott's master budget and has accumulated the following information for 2018: E (Click the icon to view some of the financial information.) (Click the icon to view additional information.) More Info Read the requirements. Requirement 1. Prepare a production budget and a direct manufacturing labor cost budget for Alcott Company by month and for the first quarter of 2018. You may combine both budgets labor-hours and show the details for each labor cost category. In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.40 per hour, worker's compensation insurance of $0.15 per hour, employee medical insurance of $0.50 per hour, and Social Security taxes. Assume that as of January 1, 2018, the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by Alcott on its direct manufacturing employees is treated as a direct manufacturing labor cost. Start the schedule by preparing the production budget and calculating the total hours of direct manufacturing labor time needed for the three months in the quarter, then calculate the valu manufacturing labor by month, then quarter. (Enter the direct manufacturing labor-hours per unit to one decimal place, XX. Do not round interim calculations, and then enter all amounts whole number.) - X Data Table Alcott has a labor contract that calls for a wage increase to $11 per hour on April 1, 2018. New labor-saving machinery has been installed and will be fully operational by March 1, 2018. Alcott expects to have 22,000 frames on hand at December 31, 2017, and it has a policy of carrying an end-of-month inventory of 100% of the following month's sales plus 50% of the second following month's sales. 2018 January February March April May Estimated sales in units 15,000 18,000 8,000 10,000 10,000 - X O Requirements Print Done Selling price $ 57.00 $ 52.00 $ 52.00 $ 52.00 $ 52.00 Direct manufacturing labor-hours per unit 2.5 2.5 1.0 1.0 1.0 Wage per direct manufacturing labor-hour 8.00 $ 8.00 $ 8.00 $ 11.00 $ 11.00 1. Prepare a production budget and a direct manufacturing labor cost budget for Alcott Company by month and for the first quarter of 2018. You may combine both budgets in one schedule. The direct manufacturing labor cost budget should include labor-hours and show the details for each labor cost category. Print Done 2. What actions has the budget process prompted Alcott's management to take? 3. How might Alcott's managers use the budget developed in requirement 1 to better manage the company? Enter any number in the edit fields and then click Check Answer. ? Print Done Б рarts remaining Check Answer E6-29 (similar to) E Question Help Alcott Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron Brandy, the controller, is responsible for preparing Alcott's master budget and has accumulated the following information for 2018: E (Click the icon to view some of the financial information.) (Click the icon to view additional information.) More Info Read the requirements. Requirement 1. Prepare a production budget and a direct manufacturing labor cost budget for Alcott Company by month and for the first quarter of 2018. You may combine both budgets labor-hours and show the details for each labor cost category. In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.40 per hour, worker's compensation insurance of $0.15 per hour, employee medical insurance of $0.50 per hour, and Social Security taxes. Assume that as of January 1, 2018, the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by Alcott on its direct manufacturing employees is treated as a direct manufacturing labor cost. Start the schedule by preparing the production budget and calculating the total hours of direct manufacturing labor time needed for the three months in the quarter, then calculate the valu manufacturing labor by month, then quarter. (Enter the direct manufacturing labor-hours per unit to one decimal place, XX. Do not round interim calculations, and then enter all amounts whole number.) - X Data Table Alcott has a labor contract that calls for a wage increase to $11 per hour on April 1, 2018. New labor-saving machinery has been installed and will be fully operational by March 1, 2018. Alcott expects to have 22,000 frames on hand at December 31, 2017, and it has a policy of carrying an end-of-month inventory of 100% of the following month's sales plus 50% of the second following month's sales. 2018 January February March April May Estimated sales in units 15,000 18,000 8,000 10,000 10,000 - X O Requirements Print Done Selling price $ 57.00 $ 52.00 $ 52.00 $ 52.00 $ 52.00 Direct manufacturing labor-hours per unit 2.5 2.5 1.0 1.0 1.0 Wage per direct manufacturing labor-hour 8.00 $ 8.00 $ 8.00 $ 11.00 $ 11.00 1. Prepare a production budget and a direct manufacturing labor cost budget for Alcott Company by month and for the first quarter of 2018. You may combine both budgets in one schedule. The direct manufacturing labor cost budget should include labor-hours and show the details for each labor cost category. Print Done 2. What actions has the budget process prompted Alcott's management to take? 3. How might Alcott's managers use the budget developed in requirement 1 to better manage the company? Enter any number in the edit fields and then click Check Answer. ? Print Done Б рarts remaining Check Answer
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Alcott Company Answer 1 Production Direct Manufacturing Labor Budget January February March 1st Quar... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133428704
15th edition
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
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