Prepare a production budget and a direct labor budget

Assignment Help Cost Accounting
Reference no: EM13546565

Donnegal Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2012.


January

February

March

April

May

Estimated unit sales

10,000

12,000

8,000

9,000

9,000

Sales price per unit

$50.00

$47.50

$47.50

$47.50

$47.50

Direct labor hours per unit

2

2

1.5

1.5

1.5

Wage per direct labor hour

$8.00

$8.00

$8.00

$9.00

$9.00

Donnegal has a labor contract that calls for a wage increase to $9.00 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1.Donnegal expects to begin the year with 16,000 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 50% of the second following month's sales.

Instructions

Prepare a production budget and a direct labor budget for Donnegal Company by month and for the first quarter of the year. The direct labor budget should include direct labor hours

Reference no: EM13546565

Questions Cloud

An inventor claims to have a heat engine : An inventor claims to have a heat engine that has an efficiency of 40% when it operates between a high temperature reservoir of 150? C and a low temperature reservoir of 30? C. This engine:
What is the viscous force on a sphere : When an object moves through a fluid, the fluid exerts a viscous force on the object that tends to slow it down. What is the viscous force on a sphere of radius R = 4.90 10-4 m that is falling through water
Explain how much would it cost to give the statue : An artist statue has a surface area of 14.6 feet squared. the artist plans to apply gold plates to the statue and wants the coating to be 2.5 micrometers thick. If the price of gold were $625.10 per troy ounce, how much would it cost to give the s..
Prepare a summary journal to record raw material used : Prepare a summary journal to record raw material used
Prepare a production budget and a direct labor budget : Prepare a production budget and a direct labor budget for Donnegal Company by month and for the first quarter of the year. The direct labor budget should include direct labor hours
Calculate how much will spill over when temperature rises : The average coefficient of volume expansion for carbon tetrachloride is 5.81 10-4 (°C)?1. how much will spill over when the temperature rises to 29.0°C
Explain what is the speed of kilometers per hour : The speed of light in a vacuum is 2.998x10^8 m/s. what is the speed of kilometers per hour. what is the speed in miles per minutes.
Determine the unit costs of production : Compute equivalent units of production for materials and for conversion costs, determine the unit costs of production.
Compute the density of material composing life preserver : In seawater, a life preserver with a volume of 4.00×10?2m^3 will support a 72.0kg person (average density 980kg/m^3 ), compute the density of the material composing the life preserver

Reviews

Write a Review

Cost Accounting Questions & Answers

  Compute the current ratio

Using the following data, compute the current ratio. Return on sales, asset turnover, and return on equity.

  Write a 7 - 8 page double spaced paper answering and

write a 7 - 8 page double spaced paper answering and demonstrating with calculations and financial data the following

  1under variable costing which of the following costs would

1.under variable costing which of the following costs would be included in finished goods inventory?a.advertising

  Sold items on credit to radio hut

23 Sold items on credit to Radio Hut. Some of these items were previously ordered on 13 January, Customer PO#4624. Forwarded Invoice #3469 and delivered the following items to Radio Hut.

  Evaluate the opportunity cost of the president''s decision

Drop a Product and opportunity cost Midwestern Sod Company produces two products - Evaluate the opportunity cost of the president's decision to stick with both types of grass?

  Implement because of measurement problems

Accounting practitioners have criticized some proposed accounting standards on the grounds that they would be difficult to implement because of measurement problems.

  Make capital investment decisions

Compute the payback period and using ARR to make capital investment decisions. Refer to the Robinson Hardware information in Exercise E26-19. Assume the project has no residual value. Compute the ARR for the investment. Round to two places.

  Questionluke valued and sold at 210000 his original basis

questionluke valued and sold at 210000. his original basis in the land was 180000.for the land luke received 60000 in

  Prepare journal entries to record the preceding information

Prepare the journal entries to record the preceding information and to transfer Factory Overhead to Work in Process.

  Five years ago heinz purchased a 1200000 term life

five years ago heinz purchased a 1200000 term life insurance policy from west coast life insurance payable to his wife

  Calculate the asset turnover

During 2014 Paola Corporation reported net sales of $3,500,000 and net income of $1,500,000. Its balance sheet reported average total assets of $1,400,000. Calculate the asset turnover.

  Calculate the quantities and cost of used

Calculate the quantities and cost of used and unused capacity for thefour types of personnel, and the total cost of unused capacity for the year. How can Dr. Meara reduce the costs of unused capacity?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd