LiquidHair Inc. hired an accountant to produce the master budget. M C A B B F...

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LiquidHair Inc. hired an accountant to produce the master budget. M C A B B F H E G 0 B I Herbal Hair Sales Budget Budgeted sales in bottles Selling price per bottle Sales in S Production Budget Budgeted sales in bottles Desired finished goods inventory Total need Less beginning finished goods inventory Required production units Direct Materials Budget Required production units Units of raw material needed per bottle Units of raw material needed to meet production Plus desired ending raw material inventory Total units of raw materials needed Less units in beginning raw material inventory Units of raw materials to be purchased Cost of raw material per unit Cost of raw material to be purchased Direct Labour Budget Required production units Direct labor hours per bottle Total direct labor hours needed Direct labor cost per hour Total direct labor cost The variable manufacturing overhead rate is 2$ per labour hour. The fixed manufacturing overhead is 1,000$ per month. The depreciation is 1505 per month. a) How many months are there in a quarter? b) Calculate the manufacturing overhead budget. c) What is the predetermined overhead rate for the year? • Prepare the Ending Inventory Budget Q1 § 22 $24.200 QI QI 1100 QI 1100 110 1210 20 1190 1190 1 1190 25 1215 10 1205 $1 $1,205 02 $22 $24,200 Q2 1100 Q2 1100 160 1260 110 1150 1150 1 1150 25 1175 25 1150 $1 Q3 1100 $ 22 $24,200 $10 $1.917 Q3 Q3 1100 160 1260 160 1100 1100 1 1100 25 1125 25 1100 $1 $1,150 $1,100 04 2400 5700 $ 20 S 18 $43,200 $115,800 04 Q4 04 2400 160 2560 160 2400 2400 1 2400 50 2450 Q2 Q3 1100 1190 1150 2400 0.1666667 0.1666667 0.1666667 0.1666667 198 192 183 400 $10 $10 $1,983 $1,833 25 Total $10 $4,000 10 min 15 min 30 min 45 min 60 min 90 min 5840 1 5840 50 5890 10 2425 5880 $1 $1 $2,425 $5,880 Total Total 5700 160 5860 20 5840 Total 5840 0.16667 973 $10 59,733 10 min/60 min 15 min/60 min 30 min / 60 min 45 min/60 min 60 min/60 min 90 min/60 min 0.16667 hours 0.25 hours 0.5 hours 0.75 hours 1 hours 1.5 hours LiquidHair Inc. hired an accountant to produce the master budget. M C A B B F H E G 0 B I Herbal Hair Sales Budget Budgeted sales in bottles Selling price per bottle Sales in S Production Budget Budgeted sales in bottles Desired finished goods inventory Total need Less beginning finished goods inventory Required production units Direct Materials Budget Required production units Units of raw material needed per bottle Units of raw material needed to meet production Plus desired ending raw material inventory Total units of raw materials needed Less units in beginning raw material inventory Units of raw materials to be purchased Cost of raw material per unit Cost of raw material to be purchased Direct Labour Budget Required production units Direct labor hours per bottle Total direct labor hours needed Direct labor cost per hour Total direct labor cost The variable manufacturing overhead rate is 2$ per labour hour. The fixed manufacturing overhead is 1,000$ per month. The depreciation is 1505 per month. a) How many months are there in a quarter? b) Calculate the manufacturing overhead budget. c) What is the predetermined overhead rate for the year? • Prepare the Ending Inventory Budget Q1 § 22 $24.200 QI QI 1100 QI 1100 110 1210 20 1190 1190 1 1190 25 1215 10 1205 $1 $1,205 02 $22 $24,200 Q2 1100 Q2 1100 160 1260 110 1150 1150 1 1150 25 1175 25 1150 $1 Q3 1100 $ 22 $24,200 $10 $1.917 Q3 Q3 1100 160 1260 160 1100 1100 1 1100 25 1125 25 1100 $1 $1,150 $1,100 04 2400 5700 $ 20 S 18 $43,200 $115,800 04 Q4 04 2400 160 2560 160 2400 2400 1 2400 50 2450 Q2 Q3 1100 1190 1150 2400 0.1666667 0.1666667 0.1666667 0.1666667 198 192 183 400 $10 $10 $1,983 $1,833 25 Total $10 $4,000 10 min 15 min 30 min 45 min 60 min 90 min 5840 1 5840 50 5890 10 2425 5880 $1 $1 $2,425 $5,880 Total Total 5700 160 5860 20 5840 Total 5840 0.16667 973 $10 59,733 10 min/60 min 15 min/60 min 30 min / 60 min 45 min/60 min 60 min/60 min 90 min/60 min 0.16667 hours 0.25 hours 0.5 hours 0.75 hours 1 hours 1.5 hours

Answer rating: 100% (QA)

Lets dive into solving this problem stepbystep a How many months are there in a quarter There are 3 ... View the full answer