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Flexible Budgeting At the beginning of the period, the Grinding Department budge

ID: 2474175 • Letter: F

Question

Flexible Budgeting

At the beginning of the period, the Grinding Department budgeted direct labor of $30,600 and property tax of $42,000 for 1,700 hours of production. The department actually completed 2,100 hours of production.

Determine the budget for the department, assuming that it uses flexible budgeting.
$

Production Budget

Renegade Publishers Inc. projected sales of 53,000 diaries for 2016. The estimated January 1, 2016, inventory is 2,700 units, and the desired December 31, 2016, inventory is 6,000 units.

What is the budgeted production (in units) for 2016?
units

Direct Materials Purchases Budget

Killingsworth Publishers Inc. budgeted production of 57,000 diaries in 2016. Paper is required to produce a diary. Assume 104 square yards of paper are required for each diary. The estimated January 1, 2016, paper inventory is 356,000 square yards. The desired December 31, 2016, paper inventory is 207,000 square yards.

If paper costs $0.16 per square yard, determine the direct materials purchases budget for 2016. If required, round your final answer to the nearest dollar.
$

Direct Labor Cost Budget

Dauber Publishers Inc. budgeted production of 60,000 diaries in 2016. Each diary requires assembly. Assume that 12 minutes are required to assemble each diary.

If assembly labor costs $17.25 per hour, determine the direct labor cost budget for 2016. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar.
$

Explanation / Answer

Production Budget

Direct Material Purchase Budget

Direct Labor Budget

Flexible Budget 1700 2100 Direct Labor 30600 37800 Property Tax (Assuming Variable cost) 42000              51,882.35 74300              91,782.35 Flexible Budget 1700 2100 Direct Labor 30600 37800 Property Tax (Assuming Fixed Cost) 42000 42000 72600 79800