Ponderosa Company makes harnesses and plans the following activity for 2023: Units to be Sold Units...
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Ponderosa Company makes harnesses and plans the following activity for 2023: Units to be Sold Units to be Produced Ending Inventory of FG 10,000 units 11,000 units 2,100 units January February 10,500 units 12,000 units 3,600 units March 13,000 units 14,000 units 4,600 units April 16,200 units 15,000 units 3,400 units May 14,400 units 13,000 units 2,000 units Material in each product is: Part K# 34 2 feet at $4.00 per foot for January through March and $4.20 per foot for April through December 3 parts at $7.00 per part Part C# 20 Desired Ending Inventory of each type of Material is 30% of the amount to be used in the following month. Direct labor is expected to be 1.5 hours and workers will be paid $24.00 per hour. For the year, Ponderosa expects to work 200,000 hours of direct labor. Factory Overhead is expected to be: Indirect Material Power $1.20 per hour of direct labor $0.50 per hour of direct labori $144,000 for the year $480,000 for the year Supervision Depreciation Property Taxes Other $36,000 for the year $60,000 for the year Prepare the following budgets for Ponderosa: 1. The materials USAGE budget for April 2. The direct labor budget for April 3. The factory overhead budget 4. Determine the rate per hour of direct labor (not per machine hour or percentage of labor cost) to be used to allocate factory overhead for next year. 5. The finished goods budget for March 31 and for April 30 Ponderosa Company makes harnesses and plans the following activity for 2023: Units to be Sold Units to be Produced Ending Inventory of FG 10,000 units 11,000 units 2,100 units January February 10,500 units 12,000 units 3,600 units March 13,000 units 14,000 units 4,600 units April 16,200 units 15,000 units 3,400 units May 14,400 units 13,000 units 2,000 units Material in each product is: Part K# 34 2 feet at $4.00 per foot for January through March and $4.20 per foot for April through December 3 parts at $7.00 per part Part C# 20 Desired Ending Inventory of each type of Material is 30% of the amount to be used in the following month. Direct labor is expected to be 1.5 hours and workers will be paid $24.00 per hour. For the year, Ponderosa expects to work 200,000 hours of direct labor. Factory Overhead is expected to be: Indirect Material Power $1.20 per hour of direct labor $0.50 per hour of direct labori $144,000 for the year $480,000 for the year Supervision Depreciation Property Taxes Other $36,000 for the year $60,000 for the year Prepare the following budgets for Ponderosa: 1. The materials USAGE budget for April 2. The direct labor budget for April 3. The factory overhead budget 4. Determine the rate per hour of direct labor (not per machine hour or percentage of labor cost) to be used to allocate factory overhead for next year. 5. The finished goods budget for March 31 and for April 30
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Related Book For
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
Posted Date:
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