Problems rer. Hale Specialties manufactures, among other things, woolen 6-35 Bud

Question

Problems rer. Hale Specialties manufactures, among other things, woolen 6-35 Budget schedules for a manufactu blankets for the athletic teams of the two local high schools. The compa and sews on a logo patch purchased from the licensed logo store site. The te Broncos, with red blankets and the Broncos logo Rams, with black blankets and the Rams logo Also, the black blankets are slightly larger than the red blankets. The budgeted direct-cost inputs for each product in 2017 are as follows: Broncos Blanket Rams Blanket 5 yards 0 yards Red wool fabric Black wool fabric Broncos logo patches Rams logo patches Direct manufacturing labor 4 hours 5 hours Unit data pertaining to the direct materials for March 2017 are as follows: Actual Beginning Direct Materials Inventory (3/1/2017) Rams Blanket Broncos Blanket 40 yards 50 0 yards 20 Red wool fabric Black wool fabric Broncos logo patches Rams logo patches 65 Target Ending Direct Materials Inventory (3/31/2017) Broncos Blanket Red wool fabric Black wool fabric Broncos logo patches Rams logo patches Rams Blanket 0 yards 20 30 yards 30 30 Unit cost data for direct-cost inputs pertaining to February 2017 and March 2017 are as follows February 2017 (actual) S10 14 March 2017 Red wool fabric (per yard) Black wool fabric (per yard) Broncos logo patches (per patch) Rams logo patches (per patch) Manufacturing labor cost per hour 13 27 28

Explanation / Answer

a. Revenue Budget Broncos Rams Total Unit Sales 140 195 Unit selling price 305 378 Budgeted Revenues 42700 73710 116410 b.   Production Budget Broncos Rams Total Budgeted Sales units 140 195 Add: Target Ending Inventory 24 29 Total units neded 164 224 Less: Beginning Inventory 14 19 Budgeted Production 150 205 c. Direct material usage and purchase budget Broncos Rams Total Budgeted production 150 205 Wool: Red / Black wool fabric required per unit (yard) 5 6 Total wool required 750 1230 Add: Target ending inventory (yard) 30 20 Total wool needed for the month 780 1250 Less: Beginning inventory (yard) 40 20 Budgeted wool purchases (yards) 740 1230 Cost per yard of wool (Red/ Black) 11 13 Budgeted Purchases of Wool ($) 8140 15990 24130 Logo patches: Logo patches required per unit (nos.) 1 1 Total patches required (nos) 150 205 Add: Target ending inventory (nos) 30 30 Total logo patches needed for the month 180 235 Less: Beginning inventory (nos.) 50 65 Budgeted logo patches purchases (yards) 130 170 Cost per no. Of logo patches 8 9 Budgeted Purchases of logos($) 1040 1530 2570 Total purchases ($) 9180 17520 26700 d.   Direct manufacturing labor cost budget Broncos Rams Total Budgeted production 150 205 Direct labor hours per unit 4 5 Total direct labor hours required 600 1025 1625 Direct labor cost per hour 28 28 28 Total Direct labor cost 16800 28700 45500 e. Manufacturing overhead budget Broncos Rams Total Budgeted direct labor hours 600 1025 1625 Variable manufacturing overhead cost per hour 17 Variable manufacturing overheadfor the month 27625 Fixed manufacturing overhead for the month 14625 Total manufacturing overhead 42250

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