Current Designs 10 (Part Level Submission) The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,440 kayaks during...


Current Designs 10 (Part Level Submission)<br>The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,440 kayaks during 2020. Each kayak will require 54 pounds of polyethylene powder and a<br>finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.10 per pound, and the finishing kits cost $250 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the<br>oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $14 per hour, and the type II are paid $11 per hour.<br>Manufacturing overhead is budgeted at $390,400 for 2020, broken down as follows.<br>Variable costs<br>Indirect materials<br>$41,280<br>Manufacturing supplies<br>44,720<br>Maintenance and utilities<br>86,000<br>172,000<br>Fixed costs<br>Supervision<br>96,000<br>Insurance<br>14,400<br>Depreciation<br>108,000<br>218,400<br>Total<br>$390,400<br>During the first quarter, ended March 31, 2020, 910 units were actually produced with the following costs.<br>Polyethylene powder<br>$56,024<br>Finishing kits<br>Type I labor<br>227,890<br>25,480<br>Type II labor<br>31,250<br>Indirect materials<br>10,920<br>Manufacturing supplies<br>11,867<br>Maintenance and utilities<br>25,210<br>Supervision<br>22,000<br>Insurance<br>3,600<br>Depreciation<br>27,000<br>Total<br>$441,241<br>v (b)<br>Prepare the flexible budget for manufacturing for the quarter ended March 31, 2020. Assume activity levels of 760, 860, and 910 units. (List variable costs before fixed costs. Round answers to 2 decimal places, e.g. 5,275.25.)<br>CURRENT DESIGNS<br>Rotomolded Line<br>Manufacturing Flexible Budget Report<br>For the Quarter Ended March 31, 2020<br>Units to be Produced<br>760<br>860<br>910<br>Variable Costs<br>Polyethylene Powder<br>45144<br>51084<br>54054<br>Finishing Kits<br>190000<br>215000<br>227500<br>Labor - Type I<br>21280<br>24080<br>25480<br>Labor - Type II<br>25080<br>28380<br>30030<br>Indirect Materials<br>9120<br>10320<br>10920<br>Manufacturing Supplies<br>9880<br>11180<br>11830<br>Maintenance and Utilities v<br>19000<br>21500<br>22750<br>Total Variable Costs<br>319504<br>361544<br>382564<br>Fixed Costs<br>Supervision<br>22000<br>22000<br>22000<br>Insurance<br>3600<br>3600<br>3600<br>Depreciation<br>27000<br>27000<br>27000<br>Total Fixed Costs<br>52600<br>52600<br>52600<br>Total Costs<br>372104<br>414144<br>435164<br>By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.<br>

Extracted text: Current Designs 10 (Part Level Submission) The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,440 kayaks during 2020. Each kayak will require 54 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.10 per pound, and the finishing kits cost $250 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $14 per hour, and the type II are paid $11 per hour. Manufacturing overhead is budgeted at $390,400 for 2020, broken down as follows. Variable costs Indirect materials $41,280 Manufacturing supplies 44,720 Maintenance and utilities 86,000 172,000 Fixed costs Supervision 96,000 Insurance 14,400 Depreciation 108,000 218,400 Total $390,400 During the first quarter, ended March 31, 2020, 910 units were actually produced with the following costs. Polyethylene powder $56,024 Finishing kits Type I labor 227,890 25,480 Type II labor 31,250 Indirect materials 10,920 Manufacturing supplies 11,867 Maintenance and utilities 25,210 Supervision 22,000 Insurance 3,600 Depreciation 27,000 Total $441,241 v (b) Prepare the flexible budget for manufacturing for the quarter ended March 31, 2020. Assume activity levels of 760, 860, and 910 units. (List variable costs before fixed costs. Round answers to 2 decimal places, e.g. 5,275.25.) CURRENT DESIGNS Rotomolded Line Manufacturing Flexible Budget Report For the Quarter Ended March 31, 2020 Units to be Produced 760 860 910 Variable Costs Polyethylene Powder 45144 51084 54054 Finishing Kits 190000 215000 227500 Labor - Type I 21280 24080 25480 Labor - Type II 25080 28380 30030 Indirect Materials 9120 10320 10920 Manufacturing Supplies 9880 11180 11830 Maintenance and Utilities v 19000 21500 22750 Total Variable Costs 319504 361544 382564 Fixed Costs Supervision 22000 22000 22000 Insurance 3600 3600 3600 Depreciation 27000 27000 27000 Total Fixed Costs 52600 52600 52600 Total Costs 372104 414144 435164 By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.
Jun 11, 2022
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