Clairpointe Accessories manufactures products for food preparation at several different manufacturing sites. The following costs and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Clairpointe Accessories manufactures products for food preparation at several different manufacturing sites. The following costs and other data apply to unit production from the year just ending: Direct materials per unit 4.2 board feet of wood at 56 per board foot 8.8 pounds of plastic at $8.50 per pound Direct labor per unit 0.4 hour at $25 per hour Overhead per unit Indirect labor Indirect materials Power Equipment Facilities Total overhead per unit $ 1.70 8.75 0.25 1.80 1.90 $ 6.40 The plant controller at the Norfolk Street facility is preparing the budget for the coming year. You learn that equipment and facilities costs are fixed and are based on a normal production of 30,000 units per year. Other overhead costs are variable. Plant capacity is sufficient to produce 37.500 units per year. Direct labor costs per hour are expected to rise by 5 percent this year. Wood prices are expected to remain unchanged, but plastic prices are expected to decrease by 8 percent. A new production method, which will be put into use at the beginning of the coming year, will result in a reduction of the wood required to produce a unit by 3 percent. No other costs are expected to change. During the coming budget period, Clairpointe expects to sell 32,000 units. Finished goods Inventory is targeted to decrease from the current balance of 4,000 units to 3,500 units as part of a corporate-wide Initiative to lower Inventory levels. Production will occur evenly throughout the year. Inventory levels for wood and plastic are expected to remain unchanged throughout the year. There is no work-in-process Inventory. Required: a. Prepare a production budget for the coming year. b. Estimate the direct materials, direct labor, and overhead costs for the coming year. Clairpointe Accessories manufactures products for food preparation at several different manufacturing sites. The following costs and other data apply to unit production from the year just ending: Direct materials per unit 4.2 board feet of wood at 56 per board foot 8.8 pounds of plastic at $8.50 per pound Direct labor per unit 0.4 hour at $25 per hour Overhead per unit Indirect labor Indirect materials Power Equipment Facilities Total overhead per unit $ 1.70 8.75 0.25 1.80 1.90 $ 6.40 The plant controller at the Norfolk Street facility is preparing the budget for the coming year. You learn that equipment and facilities costs are fixed and are based on a normal production of 30,000 units per year. Other overhead costs are variable. Plant capacity is sufficient to produce 37.500 units per year. Direct labor costs per hour are expected to rise by 5 percent this year. Wood prices are expected to remain unchanged, but plastic prices are expected to decrease by 8 percent. A new production method, which will be put into use at the beginning of the coming year, will result in a reduction of the wood required to produce a unit by 3 percent. No other costs are expected to change. During the coming budget period, Clairpointe expects to sell 32,000 units. Finished goods Inventory is targeted to decrease from the current balance of 4,000 units to 3,500 units as part of a corporate-wide Initiative to lower Inventory levels. Production will occur evenly throughout the year. Inventory levels for wood and plastic are expected to remain unchanged throughout the year. There is no work-in-process Inventory. Required: a. Prepare a production budget for the coming year. b. Estimate the direct materials, direct labor, and overhead costs for the coming year.
Expert Answer:
Answer rating: 100% (QA)
Units to be sold Ending finished goods Beginning FG Un... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
Students also viewed these accounting questions
-
The Balance Sheet of the Street and Highway Fund of the City of Monroe as of December 31, 2019, follow. CITY OF MONROE Street and Highway Fund Balance Sheet As of December 31, 2019 Assets Cash $...
-
K Which of the following is not true regarding externalities? OA. Externalities have no effect on market efficiency. OB. Externalities can be either positive or negative. OC. Externalities are...
-
Comprehensive Problem On July 31, 2020, the end of its most recent fiscal year, Elizabeth River Business Consultants' post- closing trial balance was as follows: Accounts Debit Credit Cash $ 26,150...
-
Factors that affect the selection of an inventory costing method do not include: (a) tax effects. (b) balance sheet effects. (c) income statement effects. (d) perpetual vs. periodic inventory system.
-
Why are consumers needs and goals constantly changing? What factors influence the formation of new goals?
-
Sheila owned an old roadside building that she believed could be easily converted into an antique shop. She talked to her friend Barbara, an antique fancier, and they executed the following written...
-
Determine the number of ideal stages required in Example 7.4 if the solvent rate used is twice the minimum. Data From Example 7.4:- A solution of acetic acid (C) in water (A) is to be extracted using...
-
Parker Hi-Fi Systems, located in Wellesley, Massachusetts, a Boston suburb, assembles and sells the very finest home theater systems. The systems are assembled with components from the best...
-
Explain why if assets are valuable resources and asset accounts have debit balances why do expense accounts also have debit balances. What is meant by the normal balance?
-
Davis has the following obligations at December 31, 2025: Note payable due in monthly installments of $50,000, plus interest, through November 30, 2026 Note payable due in monthly installments of...
-
Bob is the managing director of Hatby Pry Ltd, a family business. There are four shareholders in the company, himself, his wife Jessica and their two children, Dane and Natalie. Bob holds 25% of the...
-
Explain how debits and credit work Include a discussion on the five account classes and their normal balances. Please include at least one scholarly article reference and a correct in-text citation.
-
Randolf is putting together a syndicate for the purpose of constructing four duplexes on a piece of land he now owns. Randolf would like to raise $200,000 for construction of the duplexes. He would...
-
The Zambia Mobile Company Limited (ZMCL) launched itself on 1st September 2023. The Board of Directors quickly moved to set up the Board governing structures, management structures and operational...
-
What Marketing research was done by Coca-Cola? Where did they go wrong? What are the lessons learned from this Marketing Failure? https://youtu.be/ThZJWmCaYRQ(Links to an external site.) If you...
-
The thermal conductivity of steel is 50 W/(mK). A steel rod, well insulated along its 3.7-m length, has a cross-sectional area of 0.0025 m 2 . When heat flows along the length of the rod at the rate...
-
Why should we aim at reducing the number of NULL values in tuples when designing a database? We should encourage using NULL because it makes our queries simpler. For queries that involve attributes...
-
For all of the following words, if you move the first letter to the end of the word, and then spell the result backwards, you will get the original word: banana dresser grammar potato revive uneven...
-
Princeton Fabrication, Inc., produced and sold 1,200 units of the companys only product in March. You have collected the following information from the accounting records: Sales price (per unit) . ....
-
Magnolia Manufacturing makes wing components for large aircraft. Kevin Choi is the production manager, responsible for manufacturing, and Michelle Michaels is the marketing manager. Both managers are...
-
Write a memo to Jordan Carr outlining how you would recommend measuring customer satisfaction for JYC Investments. Be sure to discuss the advantages and disadvantages of your proposed measure.
-
Construct a frequency and relative frequency histogram of the five-year rate of- return data discussed in Example 3. Approach To draw the frequency histogram, use the frequency distribution in Table...
-
Construct a frequency and relative frequency histogram of the five-year rate of- return data discussed in Example 3. Approach We will use StatCrunch to construct the frequency and relative frequency...
-
The data in Table 14 represent the two-year average percentage of persons living in poverty, by state, for the years 20122013. Draw a stem-and-leaf plot of the data. Approach Step 1 Treat the integer...
Study smarter with the SolutionInn App