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The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,960 kayaks during 2020. Each kayak will require 56 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.00 per pound, and the finishing kits cost $150 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $19 per hour, and the type II are paid $16 per hour. Manufacturing overhead is budgeted at $381,520 for 2020, broken down as follows. Variable costs Indirect materials Manufacturing supplies Maintenance and utilities Fixed costs Supervision Insurance Depreciation Total Polyethylene powder Finishing kits Type I labor Type II labor Indirect materials Manufacturing supplies Maintenance and utilities Supervision Insurance Depreciation $39,600 55,440 Total 91,080 186,120 During the first quarter, ended March 31, 2020, 1,040 units were actually produced with the following costs. 74,000 13,200 108,200 195,400 $381,520 $59,900 156,370 39,520 51,080 10,400 14,604 26,830 16,400 3,300 27,050 $405,454

The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,960 kayaks during 2020. Each kayak will require 56 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.00 per pound, and the finishing kits cost $150 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $19 per hour, and the type II are paid $16 per hour. Manufacturing overhead is budgeted at $381,520 for 2020, broken down as follows. Variable costs Indirect materials Manufacturing supplies Maintenance and utilities Fixed costs Supervision Insurance Depreciation Total Polyethylene powder Finishing kits Type I labor Type II labor Indirect materials Manufacturing supplies Maintenance and utilities Supervision Insurance Depreciation $39,600 55,440 Total 91,080 186,120 During the first quarter, ended March 31, 2020, 1,040 units were actually produced with the following costs. 74,000 13,200 108,200 195,400 $381,520 $59,900 156,370 39,520 51,080 10,400 14,604 26,830 16,400 3,300 27,050 $405,454

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 4CMA: Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold...
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The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,960 kayaks during 2020. Each kayak will require 56 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.00 per pound, and the finishing kits cost $150 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $19 per hour, and the type II are paid $16 per hour. Manufacturing overhead is budgeted at $381,520 for 2020, broken down as follows. Variable costs Indirect materials Manufacturing supplies Maintenance and utilities Fixed costs Supervision Insurance Depreciation Total Polyethylene powder Finishing kits Type I labor Type II labor Indirect materials Manufacturing supplies Maintenance and utilities Supervision Insurance Depreciation $39,600 Total 55,440 91,080 186,120 74,000 During the first quarter, ended March 31, 2020, 1,040 units were actually produced with the following costs. 13,200 108,200 195,400 $381,520 $59,900 156,370 39,520 51,080 10,400 14,604 26,830 16,400 3,300 27,050 $405,454
Transcribed Image Text:The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,960 kayaks during 2020. Each kayak will require 56 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.00 per pound, and the finishing kits cost $150 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $19 per hour, and the type II are paid $16 per hour. Manufacturing overhead is budgeted at $381,520 for 2020, broken down as follows. Variable costs Indirect materials Manufacturing supplies Maintenance and utilities Fixed costs Supervision Insurance Depreciation Total Polyethylene powder Finishing kits Type I labor Type II labor Indirect materials Manufacturing supplies Maintenance and utilities Supervision Insurance Depreciation $39,600 Total 55,440 91,080 186,120 74,000 During the first quarter, ended March 31, 2020, 1,040 units were actually produced with the following costs. 13,200 108,200 195,400 $381,520 $59,900 156,370 39,520 51,080 10,400 14,604 26,830 16,400 3,300 27,050 $405,454
Assuming the rotomolded line is treated as a cost center, prepare a flexible budget report for manufacturing for the quarter ended March 31, 2020, when 1,040 units were produced. (List variable costs before fixed costs. Round answers to O decimal places, e.g. 125.) Depreciation Finishing Kits Fixed Costs Indirect Materials Insurance Labor - Type I Labor - Type II Maintenance and Utilities Manufacturing Supplies Polyethylene Powder Supervision Total Costs Total Fixed Costs Total Variable Costs Units to be Produced Variable Costs < LA $ $ $ Budget 2 Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2020 $ LA $ CURRENT DESIGNS Rotomolded Line $ Actual tA $ $ $ Attempts: 0 of 2 used Submit Answer N
Transcribed Image Text:Assuming the rotomolded line is treated as a cost center, prepare a flexible budget report for manufacturing for the quarter ended March 31, 2020, when 1,040 units were produced. (List variable costs before fixed costs. Round answers to O decimal places, e.g. 125.) Depreciation Finishing Kits Fixed Costs Indirect Materials Insurance Labor - Type I Labor - Type II Maintenance and Utilities Manufacturing Supplies Polyethylene Powder Supervision Total Costs Total Fixed Costs Total Variable Costs Units to be Produced Variable Costs < LA $ $ $ Budget 2 Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2020 $ LA $ CURRENT DESIGNS Rotomolded Line $ Actual tA $ $ $ Attempts: 0 of 2 used Submit Answer N
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