prepare Direct Labor Budget
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Siti runs a small factory in Kuala Pilah producing banana chips. She normally sells 10,000 packets at RM5.00 per packet. She is now planning for next month’s sales and the following information is given:
Raw material required is 1000 kg of bananas at RM1.30 per kg. The labor rate is RM3.00 per hour and each packet of banana chips takes 0.25 hours to make. Manufacturing overheads are charged at RM0.80 per packet. The following stock levels are maintained:
Opening stock
Raw materials 100 kg Banana chips 80 packets
Closing stock
120 kg
70 packets
Required:
For the month ending 31 March 2018, prepare Direct Labor Budget
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- Siti runs a small factory in Kuala Pilah producing banana chips. She normally sells 10,000 packets at RM5.00 per packet. She is now planning for next month’s sales and the following information is given:Raw material required is 1000 kg of bananas at RM1.30 per kg. The labor rate is RM3.00 per hour and each packet of banana chips takes 0.25 hours to make. Manufacturing overheads are charged at RM0.80 per packet. The following stock levels are maintained:Opening stockRaw materials 100 kg Banana chips 80 packetsClosing stock120 kg70 packets Required: For the month ending 31 March 2018, prepare manufacturing overhead budgetsLia ITZY has determined that the annual demand for number 6 screws is 100,000 screws. Lia, who works in her brother’s hardware store, is in charge of purchasing. She estimates that it costs $10 every time an order is placed. This cost includes her wages, the cost of the forms used in placing the order, and so on. Furthermore, she estimates that the cost of carrying one screw in inventory for a year is one-half of 1 cent. Assume that the demand is constant throughout the year. QUESTION: What would the average inventory be? What would the annual holding cost be?Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of$25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk usesa PC and laser printer in processing orders. Time available on each PC system is sufficient toprocess 6,500 orders per year. The cost of each PC system is $1,100 per year. In addition to thesalaries, Elliott spends $27,560 for forms, postage, and other supplies (assuming 26,000 purchaseorders are processed). During the year, 25,350 orders were processed.Required:1. Classify the resources associated with purchasing as (1) flexible or (2) committed.2. Compute the total activity availability, and break this into activity usage and unused activity.3. Calculate the total cost of resources supplied (activity cost), and break this into the cost ofactivity used and the cost of unused activity.4. (a) Suppose that a large special order will cause an additional 500 purchase orders. Whatpurchasing costs are…
- Lila battle has determined that the annual demand for number 6 screws is 100,000 screws. Lila, who works in her brother’s hardware store, is in charge of purchasing. She estimates that it costs $10 every time an order is placed. This cost includes her wages, the cost of forms used in the placing order, and so on. Furthermore, she estimates that the cost of carrying one screw in theinventory for an year is one-half of one cent. Assume that the demand is constant throughout the year. (a)How many number 6 screws should Lila order at a time if she wishes to minimize total inventory cost? (b)How many orders per year would be placed? What would the annual ordering cost be? (c)What would the average inventory be? What would the annual holding cost be?The Handy Doll Manufacturing Company has the following information:The average doll sales price is $12, raw materials for a doll are $4, and ittakes 15 minutes to assemble a doll. Production labor is paid $8 per hour.Operating expenses are as follows: salaries, $2,500 per week; insurance,$1,200 per quarter; rent, $1,500 per month; and utilities, $800 per month.How many dolls must be sold per month to break even? How manydollars in sales does this represent? What is the contribution margin foreach doll sold?Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $10,000 for this process, direct labor is $3.50 per package, and material is $4.50 per package. The selling price will be $12.50 per package. How much revenue do we need to take in before breaking even? What is the break-even point in units?
- Al Bawadir manufacturing LLC, who is a leading bottle manufacturing company in Muscat. Mr.Saud, who has recently joined as a production supervisor would like to calculate the total cost of producing 1000 bottles in a month. Records show that material cost of producing one bottle is RO 1.5 while labor cost per chair is RO 1 and other manufacturing cost is also RO 2.5 per unit. The company pays RO 1500 per month as a rent and Mr. Saud found that there are no other expenses Discuss what would be total cost if Al Bawadir produces 1500 bottles in a month. Why Rent should be considered in the total cost. Discuss with reasonsBaby Doll Shop currently manufactures wooden parts for dollhouses. Itssole worker is paid $8.10 an hour and, using a handsaw, can produce a year's required production (1,600 parts) in just eight weeks of 40 hours per week. That is, the worker averages five parts per hour when working by hand. The shop is considering the purchase of a power band saw with associated fixtures in order to improve the productivity of this operation. Three models of power saw could be purchased: Model A (economy version), Model B (high-powered version), and Model C (deluxe high-end version). The major operating difference between these models is their speed of operation. The investment costs, including the required fixtures and other operating characteristics, are summarized as follows: Assume that MARR = 10%. Are there enough potential savings to make iteconomical to purchase any of the power band saws? Which model is most economical according to the rate-of-return principle? (Assume that any effect of…Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is $1,100 per year. In addition to the salaries, Elliott spends $27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. REQUIRED: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing…
- Olga was planning to set up a business where she would purchase paintings for $1,050 per unit and sell them for $1,800 per unit. She wanted to conduct a break-even analysis and identified the following costs for running her business: $4,470.00 per month for store leasing, $54 per month website hosting fee, $5,150 per month for staff salary, $2,040 per month for advertising costs, and $25 per unit for labour charges to pack the paintings. a. How many paintings would she have to sell per month to break-even? Round up to the next whole number b. If she wants to make a profit of $24,000 in a month, how many paintings would she have to sell? Round up to the next whole numberA small shop in Bulacan fabricates portable threshers for palay producers in the locality. The shop can produce each thresher at a labor cost of P1,800. The cost of materials for each unit is P2,500. The variable costs amount to P650 per unit, while fixed charges incurred per annum totals P69,000. If the portable threshers are sold at P7,800 per unit, how many units must be produced and sold per annum to break-even? Support your answer with computations and also by graphical solution.A tiny firm in Bulacan makes portable threshers for the area's palay growers. The shop can create each thresher for P1,800 in labour. Each unit has a material cost of P2,500. The variable expenses per unit are P650, whereas the annual fixed costs are P69,000. How many portable threshers must be built and sold per year to break even if each unit costs P7,800? Computes and a graphical solution can both be used to back up your response. (Please offer a COMPLETE and UNDERSTANDABLE answer.) Also, be sure to write legibly.)