Cameron​, Inc. manufactures model airplane kits and projects production at 300​, 120​, 350​, and 550 kits for the next four quarters. 1​(Click the icon to view the manufacturing​ information.) Prepare...





Cameron​,

Inc. manufactures model airplane kits and projects production at
300​,

120​,

350​,

and
550

kits for the next four quarters.


1​(Click

the icon to view the manufacturing​ information.)


Prepare
Cameron​'s

direct materials​ budget, direct labor​ budget, and manufacturing overhead budget for the year. Round the direct labor hours needed for​ production, budgeted overhead​ costs, and predetermined overhead allocation rate to two decimal places. Round other amounts to the nearest whole number.






Begin by preparing
Cameron​'s

direct materials budget.












































































































Cameron, Inc.



Direct Materials Budget



For the Year Ended December 31







First



Second



Third



Fourth











Quarter



Quarter



Quarter



Quarter



Total



(1)























Direct materials (ounces) per kit






















Direct materials needed for production






















Plus:



(2)























Total direct materials needed






















Less:



(3)























Budgeted purchases of direct materials






















Direct materials cost per ounce






















Budgeted cost of direct materials purchases
























Prepare the direct labor budget. ​(Enter any hours as a decimal to two​ places, X.XX, and round all other amounts to the nearest whole​ number.)










































































Cameron, Inc.



Direct Labor Budget



For the Year Ended December 31







First



Second



Third



Fourth











Quarter



Quarter



Quarter



Quarter



Total



(4)
























(5)























Direct labor hours needed for production























(6)























Budgeted direct labor cost
























Prepare the manufacturing overhead budget. ​(Enter all costs and hours as a decimal to two​ places, X.XX. Abbreviations​ used: VOH​ = variable manufacturing​ overhead; FOH​ = fixed manufacturing​ overhead.)











































































































Cameron, Inc.



Manufacturing Overhead Budget



For the Year Ended December 31







First



Second



Third



Fourth











Quarter



Quarter



Quarter



Quarter



Total



(7)























VOH cost per kit






















Budgeted VOH






















Budgeted FOH






















Budgeted manufacturing overhead costs




































Direct labor hours






















Budgeted manufacturing overhead costs














Predetermined overhead allocation rate


















1: More Info


Direct materials are
seven

ounces of plastic per kit and the plastic costs
​$5

per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is
950

​ounces, and the company desires to end each quarter with
10​%

of the materials needed for the next​ quarter's production.
Cameron

desires a balance of
290

ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires
0.75

hours of direct labor at an average cost of
$15

per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is
$0.80

per​ kit, and fixed overhead is
$130

per quarter.







(1)





Budgeted kits to be produced



Budgeted kits to be sold



Desired direct materials in ending inventory





Direct materials in beginning inventory







(2)





Budgeted kits to be produced



Budgeted kits to be sold



Desired direct materials in ending inventory





Direct materials in beginning inventory







(3)





Budgeted kits to be produced



Budgeted kits to be sold



Desired direct materials in ending inventory





Direct materials in beginning inventory







(4)





Budgeted kits to be produced



Budgeted kits to be sold



Desired kits in ending inventory





Kits in beginning inventory







(5)





Direct labor cost per hour



Direct labor hours per unit







(6)





Direct labor cost per hour



Direct labor hours per unit







(7)





Budgeted kits to be produced



Budgeted kits to be sold





Jun 10, 2022
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