Question 23 3.333 pts Soft Glow Candle Co. budgeted production of 78,900 candles
ID: 2511089 • Letter: Q
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Question 23 3.333 pts Soft Glow Candle Co. budgeted production of 78,900 candles in 2012. Wax is required to produce a candle. Assume 8 ounces (one half of a pound) of wax is required for each candle. The estimated January 1, 2012, wax inventory is 2,000 pounds. The desired December 31, 2012, wax inventory is 2,400 pounds. If candle wax costs $3.20 per pound, what is the total direct materials purchases budget for 2012? $127,520 $133,920 O $126.240 O None of the above answers is correct. Question 24 3.333 pts Soft Glow Candle Co. budgeted production of 78,900 candels in 2012. Each candle requires molding. Assume that 15 minutes are required to mold each candle. If molding labor costs $16.00 per hour, what would be the direct labor cost budget for molding for 2012? $1,183,500 $315,600 $19,725 O None of the above answers is correct.Explanation / Answer
Answer 23.
Budgeted Production = 78,900 candles
Materials required to meet production = 78,900 candles * 0.5 pounds per candle
Materials required to meet production = 39,450 pounds
Materials purchases = Materials required to meet production + Desired ending materials inventory - Beginning materials inventory
Materials purchases = 39,450 pounds + 2,400 pounds - 2,000 pounds
Materials purchases = 39,850 pounds
Cost of Materials purchases = 39,850 pounds * $3.20 per pound
Cost of Materials purchases = $127,520
Answer 24.
Budgeted Production = 78,900 candles
Number of direct labor hours needed = 78,900 * 15/60
Number of direct labor hours needed = 19,725
Direct Labor cost = 19,725 hours * $16.00 per hour
Direct Labor cost = $315,600
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