Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin

Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner's master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer's share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company's union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 6,200 glare filters in inventory on December 31 of the current year, and has a policy of carrying 25 percent of the following month's projected sales in inventory. Information on the first four months of the coming year is as follows:

JanuaryFebruaryMarchAprilEstimated unit sales36,00035,00039,00040,600Sales price per unit$81$81$76$76Direct labor hours per unit2.902.902.502.50Direct labor hourly rate$17$17$18$18Direct materials cost per unit$7$7$7$7

Required:

Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit.

Cengage Log in X CengageNOWv2 | Online teachin X Course Hero X + X CA https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator= &i... @ Chapter 9 eBook Print Item Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin ? Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner's master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer's share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company's union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 6,200 glare filters in inventory on December 31 of the current year, and has a policy of carrying 25 percent of the following month's projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 86,000 35,000 39,000 40,600 Sales price per unit $81 $81 $76 $76 Direct labor hours per unit 2.9 2.90 2.50 2.50 Direct labor hourly rate $17 $17 $18 $18 Direct materials cost per unit $7 $7 $7 $7 Required: Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit. 1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year. a. Production budget in units: Greiner Company Production Budget (units) For the First Quarter of the Coming Year January February March Total Unit sales 36,000 35,000 89,000 110,000 Desired ending inventory 8,750 9,750 10,150 Total units required 44,750 44,750 49,150 Less: Beginning inventory 6,200 V 8,750 9,750 Units produced 38,550 36,000 39,400 113,950 Check My Work Previous Next> Assignment Score: 86.57% Email Instructor Save and Exit Submit Assignment for Grading Type here to search O 12:29 PM 3/10/2021Cengage Log in X CengageNOWv2 | Online teachin X Course Hero X + X https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&i... Chapter 9 eBook Print Item ? b. Direct labor budget in hours: Round your answers to two decimal places, if required. Greiner Company Direct Labor Budget (hours) For the First Quarter of the Coming Year January February March Total Units produced 38,550 36,000 39,400 113,950 Direct labor hours per unit 2.9 2.9 2.5 Total labor budget (hours) 111,795 V 104,400 98,500 V 314,695 Feedback Check My Wark See Cornerstone 8.4. c. Direct materials cost budget: Greiner Company Direct Materials Cost Budget For the First Quarter of the Coming Year January February March Total Units produced 38,550 36,000 39,400 V 113,950 Cost per unit $ $ Total direct materials 269,850 252,000 275,800 S 797,650 Feedback Check My Work Check My Work Previous Next > Assignment Score: 86.57% Email Instructor Save and Exit Submit Assignment for Grading Type here to search O 12:29 PM 3/10/2021Cengage Log in X CengageNOWv2 | Online teachin X Course Hero X + X https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&i... Chapter 9 eBook Print Item d. Sales budget: Round unit selling price amounts to the nearest cent and use the same for subsequent requirements. ? Greiner Company Sales Budget (dollars) For the First Quarter of the Coming Year January February March Total Unit sales 36,000 35,000 39,000 110,000 Unit selling price 81 31 76 Total sales revenue 2,916,000 2,835,000 2,964,000 8,715,000 Feedback Check My Wark See Cornerstone 8.1. 2. Calculate the total budgeted contribution margin for Greiner Company by month and in total for the first quarter of the coming year. (CMA adapted) Greiner Company Budgeted Contribution Margin For the First Quarter of the Coming Year January February March Total Sales revenue 2,916,000 2,835,000 2,964,000 $ 8,715,000 Direct labor cost 1,900,515 1,774,800 1,773,000 5,448,315 Materials cost 269,850 252,000 275,800 797,650 Contribution margin 745,635 808,200 915,200 2,469,035 Feedback Check My Work Check My Work Previous Next > Assignment Score: 86.57% Email Instructor Save and Exit Submit Assignment for Grading Type here to search O 12:29 PM 3/10/2021