Question
I'm having problem solving this. I would appreciate some help with page 7 to 10
Background Information Bctty 's Design is a subchapter S corporation that manufactures children's lamps/ nightlights for use in bedrooms. These lamps are sold nationwide through a up of independent sales representatives who have an exclusive sales region. The business is in its tenth year and has asked you to assist in planning for next year's operations The lamps are ceramic figurines of animals, boats, boys and girls playing and singing. all in delightful colors. The owner of the business , Betty, creates a drawing for the figurine and faxes it to a plant in China where a mold is created and a sample produced and hand painted. If the mold meets the expectations of Betty an order of 500 pieces is placed. There are presently 10 different figurines that come in six different colors; 60 models. The lamp shades and the electrical parts are supplied from domestic manufacturers. There are presently 10 workers in the plant. They are responsible for receiving the raw material, manufacturing the product, packing and shipping. In addition to Betty there are two office workers who are responsible for all administrative duties. Betty had her accountant prepare the Projected Income Statement and Balance Sheet presented on page two. Betty heard about your skills in managerial accounting and would like your assistance in the following areas: Part 1 Part 2 Part 3 Part 4 Part 5 Part 6 Fixed and Variable Cost Determinations- Unit Cost Calculations Cost Volume Relationships - Profit Planning Job Order Costing Process Costing Budgets Process Costing-Weighted Average Standard Costing - Variance Analysis Part 7 Page 2 of 16
Explanation / Answer
3 Labor Cost per lamp 2.3175000 Production 26400 Total Labor Cost 61182.00 4 Variable Factory Overhead Variable Factory Overhead cost per unit 0.2362500 Number of units to be produced 26400 Total Variable Factory Overhead 6237.00 Fixed Factory Overhead 255000 Total Factory Overhead 261237.00 A Overhead allocation rate =Total Factory Overhead/No. of units =261237/26400 9.8953409 B Direct Labor Hours No. of lamps to be produced 26400 No. of lamps per hour 4 No. of Direct labor hours 6600 =Total Factory Overhead/Direct labor hours =261237/6600 39.5813636 C Direct labor cost Total Factory Overhead/Direct labor cost% =261237/61182% 426.9834 5 Selling & Administrative Budget Fixed Selling 31000 Variable selling 89727.75 Fixed Administrative 46000 Variable Administrative 1668.6 Total Selling & Administrative 168396.35 As per Policy of chegg, we are supposed to answer maximum 1 questions or four sub-parts of a questions. Thank you
