Hayes Company expects variable costs to fluctuate with production volume on the basis of the following...

 

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• Hayes Company expects variable costs to fluctuate with production volume on the basis of the following rates per direct labor hour: • indirect materials $1.00, • indirect labor $1.40, • maintenance $0.20. • Hayes also recognizes that some maintenance is fixed. The amounts reported for fixed costs are assumed for our example. General Administration Expenses Rent Depreciation Property Tax and Insurance Total Fixed Costs 1.Qrt 2. Qrt 3.Qrt 4.Qrt Total $20.000,00 $20.000,00 $20.000,00 $20.000,00 $80.000,00 $3.800,00 $3.800,00 $3.800,00 $3.800,00 $15.200,00 $9.000,00 $9.000,00 $9.000,00 $9.000,00 $36.000,00 $5.700,00 $5.700,00 $5.700,00 $5.700,00 $22.800,00 $38.500,00 $38.500,00 $38.500,00 $38.500,00 $154.000,00 • Hayes also recognizes that some maintenance is fixed. The amounts reported for fixed costs are assumed for our example. . Soriano Company is preparing its master budget for 2021. Relevant data pertaining to its sales, production, and direct materials budgets are as follows: • Sales: Sales for the year are expected to total 1,200,000 units. Quarterly sales, as a percent of total sales, are 20%, 25%, 30%, and 25%, respectively. The sales price is expected to be $50 per unit for the first three quarters and $55 per unit beginning in the fourth quarter. Sales in the first quarter of 2013 are expected to be 10% higher than the budgeted sales for the first quarter of 2021. Production: Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. • Direct materials: Each unit requires 3 pounds of raw materials at a cost of $5 per pound. Management desires to maintain raw materials inventories at 5% of the next quarter's production requirements. Assume the production requirements for the first quarter of 2022 are 810,000 pounds. ✓ Prepare the sales, production, and direct materials budgets by quarters for 2021. • Hayes Company expects variable costs to fluctuate with production volume on the basis of the following rates per direct labor hour: • indirect materials $1.00, • indirect labor $1.40, • maintenance $0.20. • Hayes also recognizes that some maintenance is fixed. The amounts reported for fixed costs are assumed for our example. General Administration Expenses Rent Depreciation Property Tax and Insurance Total Fixed Costs 1.Qrt 2. Qrt 3.Qrt 4.Qrt Total $20.000,00 $20.000,00 $20.000,00 $20.000,00 $80.000,00 $3.800,00 $3.800,00 $3.800,00 $3.800,00 $15.200,00 $9.000,00 $9.000,00 $9.000,00 $9.000,00 $36.000,00 $5.700,00 $5.700,00 $5.700,00 $5.700,00 $22.800,00 $38.500,00 $38.500,00 $38.500,00 $38.500,00 $154.000,00 • Hayes also recognizes that some maintenance is fixed. The amounts reported for fixed costs are assumed for our example. . Soriano Company is preparing its master budget for 2021. Relevant data pertaining to its sales, production, and direct materials budgets are as follows: • Sales: Sales for the year are expected to total 1,200,000 units. Quarterly sales, as a percent of total sales, are 20%, 25%, 30%, and 25%, respectively. The sales price is expected to be $50 per unit for the first three quarters and $55 per unit beginning in the fourth quarter. Sales in the first quarter of 2013 are expected to be 10% higher than the budgeted sales for the first quarter of 2021. Production: Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. • Direct materials: Each unit requires 3 pounds of raw materials at a cost of $5 per pound. Management desires to maintain raw materials inventories at 5% of the next quarter's production requirements. Assume the production requirements for the first quarter of 2022 are 810,000 pounds. ✓ Prepare the sales, production, and direct materials budgets by quarters for 2021.

Answer rating: 100% (QA)

DIRECT MATERIAL Particulars Q1 q2 q3 q4 Total Sales 20 25 30 25 Sales Unit 24000... View the full answer