In addition to the morning preschool, Spring Garden Preschool offers a Lunch Bun
ID: 2549670 • Letter: I
Question
In addition to the morning preschool, Spring Garden Preschool offers a Lunch Bunch m where kids have the option of staying an extra hou ra r for lunch and playtime. The hool charges an additional S2 per child for every Lunch Bunch attended. Historically. half of the children stay for Lunch Bunch an average of 15 times a month. Requirement Calculate Spring Garden Preschool's budgeted revenue for the school year. 20A Production budget (Learning Objective 2) Hoffman Foods produces specialty soup sold in jars. The projected sales in dollars and jars s for each quarter of the upcoming year are as follows: 1st quarter 2nd quarter rd quarter 4th quarter Total sales revenue $181,000 $219,000 $255,000 $199,000 Number of jars sold 152,500 181,500 213,000 160,500 Hoffman anticipates selling 223,000 jars with total sales revenue of $260,000 in the first quarter of the year following the year given in the preceding table. Hoffman has a policy that the ending inventory of jars must be 30% of the following quarter's sales. Prepare a production budget for the year that shows the number of jars to be produced each quarter and for the year in total. E9-21A Direct materials budget (Learning Objective 2) Sacco Industries manufactures a popular interactive stuffed animal for children that re- quires three computer chips inside each toy. The company pays $2 for each computer chip. To help to guard against stockouts of the computer chip, Sacco Industries has a policy stating that the ending inventory of computer chips should be at least 25% of the following month's production needs. The production schedule for the first four months of the year is as follows: January February March April Stuffed animals to be produced 5,600 4,800 4,200 4,000 Requirement repare a direct materials budget for the first quarter that shows both th computer chips needed and the dollar amount of the purchases in t he budget Production and direct materials budgets (Learning Objective Osborne Manufacturing produces self-watering planters for use in upscale oming year ments. Sales projections for the first five months of the upc nated unit sales of the planters each month to be as folloExplanation / Answer
20A Production budget
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total
Quarter 1
No. of jars sold
152500
181500
213000
160500
707500
223000
Estimated closing inventory
54450
63900
48150
66900
233400
Total jars required
206950
245400
261150
227400
940900
Less: Beginning inventory
0
54450
63900
48150
166500
No. of units to be produced
206950
190950
197250
179250
774400
21A Direct materials budget:
January
February
March
Quarter
April
Toys to be produced
5600
4800
4200
14600
4000
Estimated closing inventory
1200
1050
1000
3250
Total jars required
6800
5850
5200
17850
Less: Beginning inventory
0
1200
1050
2250
No. of toys to be produced
6800
4650
4150
15600
Computer chips per toy
3
3
3
Computer chips required
20400
13950
12450
46800
Cost per chip
2
2
2
Cost of material (computer chips)
40800
27900
24900
93600
23A Direct labor budget:
Cutting
Assembly
Company
No. of units to be produced:
Economy
510
510
510
Standard
700
700
700
Premium
860
860
860
Estimated hours per unit:
Economy
1.2
2.8
4
Standard
1.3
2.2
3.5
Premium
1.4
2.1
3.5
Total Estimated hours:
Economy
612
1428
2040
Standard
910
1540
2450
Premium
1204
1806
3010
Total hours in department
2726
4774
7500
Direct labor hour rate
10
12
Budgeted direct labor costs
27260
57288
84548
24A Manufacturing overhead budget:
Year
No. of units to be produced
48000
Variable Costs:
Indirect material
0.9
43200
Supplies
0.7
33600
Indirect labor
0.4
19200
Plant Utilities
0.1
4800
Repairs and maintenance
0.5
24000
Total variable manufacturing overheads
124800
Fixed costs:
Indirect labor
64000
Plant Utilities
34000
Repairs and maintenance
10000
Depreciation on plant and equipment
45000
Insurance on plant and equipment
20000
Plant supervision
68000
Total fixed manufacturing overheads
241000
Total manufacturing overheads
365800
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total
Quarter 1
No. of jars sold
152500
181500
213000
160500
707500
223000
Estimated closing inventory
54450
63900
48150
66900
233400
Total jars required
206950
245400
261150
227400
940900
Less: Beginning inventory
0
54450
63900
48150
166500
No. of units to be produced
206950
190950
197250
179250
774400
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.