First Table Question

Second Table Question

Problem 13-1 (Part Level Submission) Pina Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2017. 1. Sales: quarter 1, 29,200 bags; quarter 2, 43,200 bags. Selling price is $61 per bag. 2. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at $1.50 per pound 3. Desired inventory levels: Type of Inventory July 1 January 1 April 1 Snare (bags) 8,400 12,200 18,200 Gumm (pounds) 13,500 9,200 10,200 Tarr (pounds) 20,400 14,300 25,400 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $14 per hour. 5. Selling and administrative expenses are expected to be 15% of sales plus $180,000 per quarter. 6. Interest expense is $100,000. 7. Income taxes are expected to be 30% of income before income taxes. Your assistant has prepared two budgets: (1) the manufacturing overhead budget shows expected costs to be 125% of direct labor cost, and (2) the direct materials budget for Tarr shows the cost of Tarr purchases to be $301,000 in quarter 1 and $425,500 in quarter 2. Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, e.g. for 45 minutes the proportion will be 0.75.) PINA COMPANY Direct Labor Budget For the Six Months Ending June 30, 2017 Quarter Six Months 1 2 Units to be Produced 33000 49200 Direct Labor Time per Unit .15 .15 Total Required Direct Labor Hours 4380 6480 Direct Labor Cost per Hour 14 14 $ 61320 90720 152040 Total Direct Labor Cost Prepare the selling and administrative expense budget PINA COMPANY Selling and Administrative Expense Budget For the Six Months Ending June 30, 2017 Quarter Six Months 1 2 29200 43200 Budgeted sales in units Variable Cost Fixed Cost Total