Business, 31.03.2020 01:36, HeartfeltDream12

Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop budgets for the upcoming quarter. The following data have been gathered: Projected sales in units 1,410 cases Selling price per case $ 240 Inventory at the beginning of the quarter 150 cases Target inventory at the end of the quarter 100 cases Direct labor hours needed to produce one case 2 hours Direct labor wages $ 10 per hour Direct materials cost per case $ 8 Variable manufacturing overhead cost per case $ 6 Fixed overhead costs for the upcoming quarter $ 220,000a. Using the above information, develop Mercury's sales forecast in dollars and production schedule in units. b. What is Mercury's budgeted variable manufacturing cost per case?c. Prepare Mercury's manufacturing cost budget.

Answers: 1

Show answers

Answers

(a) Sales forecast $338,400, Production schedule $1,360 (b) Budgeted variable manufacturing cost per case $14, (c ) Total Manufacturing Cost $239,760

Explanation:

Sales forecast

Budgeted sales. 1,410

×Selling price per case 240

Budgeted sales. 338,400

Production schedule

Budgeted sales. 1,410

Targeted ending inventory 100

Cases budgeted to be available

For sale. 1,510

Less: Beginning inventory. 150

Planned production in unit 1,360

Manufacturing Cost budget

Direct materials ($8 × 1,410) 11,280

Direct Labour( $10 × 2) 20

Variable manufacturing overhead ($6 × 1,410) 8,460

Total variable manufacturing cost 19,760

Add: Fixed manufacturing overhead. 220,000

Total manufacturing cost. 239,760

Variable manufacturing cost per case

= Total variable manufacturing cost / projected sales in units

= 19,760/ 1,410

= $14

Workings

Cases budgeted to be available for sales = Budgeted sales + Target ending inventory

= 1,410 + 100

= 1,510

answered: brsglover8355

a. Sales Forecast = $338400 , b, Variable cost per case = $34, c. Budgeted Manufacturing costs = $266240

Explanation:

a. Sales forecast

Projected Sales units = 1410

Selling Price = $240

Sales Forecast = Projected sales units x Selling price

Sales Forecast = 1410 x $240 = $338400

b. Budgeted Variable cost Per unit

Budgeted Variable cost Per Unit = direct labor cost per unit + Direct Material cost per unit + Variable Manufacturing costs per unit

Direct Labor hour needed to produce one case = 2 hours

Direct labor Wage per hour = $10

Direct labor wage per unit or case = 2 x $10 =$20

Direct Materials per case = $8

Variable Fixed Manufacturing costs per unit = $6

Variable Costs Per Unit = $20 + $8 + $6 = $34

c. Budgeted Manufacturing Costs

Budgeted Manufacturing costs = Total Fixed costs + Total Variable costs

Total Fixed Costs = $220 000

Total Variable cost costs

we have a variable cost per unit of $34 per case to find total variable units we need to multiply variable costs per unit by number of units produced in the current period

number of cases at the beginning = 150 cases

Targeted sales units = 1410 cases

Targeted units on hand at the end = 100 cases

Budgeted cases to be produced in the upcoming period = 1410 + 100 - 150

Budgeted cases to be produced in the upcoming period = 1360 cases

Total Variable costs = 1360 x $34 = $46240

Total Manufacturing costs = $220 000 + $ 46240 = $266240

answered: Guest

answer is a

explanation:

answered: Guest

The measure of an economic adopted

Other questions on the subject: Business

Business, 22.06.2019 10:30, alyea231

Which analyst position analyzes information using mathematical models to business managers make decisions? -budget analyst -management analyst -credit analyst -operations research analyst

Answers: 1

continue

Business, 22.06.2019 13:50, Senica

Selected t-account balances for bloomfield company are shown below as of january 31, which reflect its accounting adjustments. the firm uses a calendar-year accounting period, but prepares monthly accounting adjustments. suppliesjan. 31 bal. 1,800 1,800 jan. 31 bal. supplies expensejan. 31 bal. 1,920 1,148 jan. 31 bal. prepaid insurancejan. 31 bal. 1,148 1,148 jan. 31 bal. insurance expensejan. 31 bal. 164 164 jan. 31 bal. wages payablejan. 31 bal. 1,400 1,400 jan. 31 bal. wages expensejan. 31 bal. 6,400 6,400 jan. 31 bal. truckjan. 31 bal. 17,376 17,376 jan. 31 bal. accumulated depreciation -truckjan. 31 bal. 5,068 5,068 jan. 31 bal. a. if the amount in supplies expense represents the january 31 adjustment for the supplies used in january, and $1,240 worth of supplies were purchased during january, what was the january 1 beginning balance of supplies? $answerb. the amount in the insurance expense account represents the adjustment made at january 31 for january insurance expense. if the original insurance premium was for one year, what was the amount of the premium, and on what date did the insurance policy start? amount of the premium $answerthe policy began on answerjune 1july 1august 1september 1october 1november 1 of the previous year. c. if we assume that no beginning balance existed in either in either wage payable or wage expense on january 1, how much cash was paid as wages during january? $answerd. if the truck has a useful life of four years (or 48 months), what is the monthly amount of depreciation expense, and how many months has bloomfield owned the truck? answermonths

Answers: 1

continue

Business, 23.06.2019 01:20, Athenax

Boxes of honey nut oatmeal are produced to contain 16.0 ounces, with a standard deviation of 0.20 ounce. for a sample size of 49, the 3-sigma -x chart control limits areupper control limit (ucl-x) = ounceslower control limit =(lcl=max

Answers: 1

continue

Business, 23.06.2019 02:00, zymikaa00

Upper a fish farm raises salmon and trout. a fish farm raises salmon and trout. the marginal cost of producing each of these products increases as more is produced. draw the firm's ppf. label it ppf1. the fish farmfish farm adopts a new technology that allows it to use fewer resources to feed the salmonfeed the salmon. draw a ppf that shows the impact of the new technology. label it ppf2.

Answers: 2

continue

Do you know the correct answer?

Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop bu...