Business, 31.03.2020 01:36 HeartfeltDream12

Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop budgets for the upcoming quarter. The following data have been gathered: Projected sales in units 1,410 cases Selling price per case $ 240 Inventory at the beginning of the quarter 150 cases Target inventory at the end of the quarter 100 cases Direct labor hours needed to produce one case 2 hours Direct labor wages $ 10 per hour Direct materials cost per case $ 8 Variable manufacturing overhead cost per case $ 6 Fixed overhead costs for the upcoming quarter $ 220,000a. Using the above information, develop Mercury's sales forecast in dollars and production schedule in units. b. What is Mercury's budgeted variable manufacturing cost per case?c. Prepare Mercury's manufacturing cost budget.

Answers: 1

Show answers

Answers

(a) Sales forecast $338,400, Production schedule $1,360 (b) Budgeted variable manufacturing cost per case $14, (c ) Total Manufacturing Cost $239,760

Explanation:

Sales forecast

Budgeted sales. 1,410

×Selling price per case 240

Budgeted sales. 338,400

Production schedule

Budgeted sales. 1,410

Targeted ending inventory 100

Cases budgeted to be available

For sale. 1,510

Less: Beginning inventory. 150

Planned production in unit 1,360

Manufacturing Cost budget

Direct materials ($8 × 1,410) 11,280

Direct Labour( $10 × 2) 20

Variable manufacturing overhead ($6 × 1,410) 8,460

Total variable manufacturing cost 19,760

Add: Fixed manufacturing overhead. 220,000

Total manufacturing cost. 239,760

Variable manufacturing cost per case

= Total variable manufacturing cost / projected sales in units

= 19,760/ 1,410

= $14

Workings

Cases budgeted to be available for sales = Budgeted sales + Target ending inventory

= 1,410 + 100

= 1,510

Answer from: brsglover8355

a. Sales Forecast = $338400 , b, Variable cost per case = $34, c. Budgeted Manufacturing costs = $266240

Explanation:

a. Sales forecast

Projected Sales units = 1410

Selling Price = $240

Sales Forecast = Projected sales units x Selling price

Sales Forecast = 1410 x $240 = $338400

b. Budgeted Variable cost Per unit

Budgeted Variable cost Per Unit = direct labor cost per unit + Direct Material cost per unit + Variable Manufacturing costs per unit

Direct Labor hour needed to produce one case = 2 hours

Direct labor Wage per hour = $10

Direct labor wage per unit or case = 2 x $10 =$20

Direct Materials per case = $8

Variable Fixed Manufacturing costs per unit = $6

Variable Costs Per Unit = $20 + $8 + $6 = $34

c. Budgeted Manufacturing Costs

Budgeted Manufacturing costs = Total Fixed costs + Total Variable costs

Total Fixed Costs = $220 000

Total Variable cost costs

we have a variable cost per unit of $34 per case to find total variable units we need to multiply variable costs per unit by number of units produced in the current period

number of cases at the beginning = 150 cases

Targeted sales units = 1410 cases

Targeted units on hand at the end = 100 cases

Budgeted cases to be produced in the upcoming period = 1410 + 100 - 150

Budgeted cases to be produced in the upcoming period = 1360 cases

Total Variable costs = 1360 x $34 = $46240

Total Manufacturing costs = $220 000 + $ 46240 = $266240

Answer from: Quest

Are legally capable of doing everything a neurologist can do with a patient in most states.

Answer from: Quest

Hi! so let’s say you buy two cds that’s a total of 20$ & two books , which is 12$, giving you the sum of 32$ , i would write it as ; c2+b2=32hope this : ) good luck!

Another question on Business

Business, 21.06.2019 13:10

The table below is comparing level of education achieved to the rate of unemployment and the median weekly earnings in 2008. based on the information provided, the unemployment rate decreases the most when moving between which two consecutive educational levels? a. “less than high school” and “high school graduate” b. “high school graduate” and “some college, no degree” c. “associate degree” and “bachelor’s degree” d. “professional degree” and “doctoral degree”

Answers: 1

Answer

Business, 22.06.2019 01:30

The strength of the economy depends on the balance pf production and consumption of goods and consumption of goods and services

Answers: 1

Answer

Business, 22.06.2019 13:50

The state troopers in one state have a motto, “nine you’re fine; ten you’re mine,” which is the standard that they use for pulling over speeders on the state highways. in other words, if the posted speed limit is 55 mph, drivers can drive at a rate up to 64 mph without fear of getting a ticket. which of the following best describes the ethical culture in the state? a. the troopers are following a standard of positive law. b. the troopers are following a normative standard. c. the troopers are following a headline test. d. the troopers are following the blanchard/peale standard.

Answers: 1

Answer

Business, 22.06.2019 20:00

Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. this increased level of is leading to increased emphasis on management.

Answers: 2

Answer

You know the right answer?

Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop bu...

Questions

Business, 07.04.2020 02:49

Blevins, Inc. calls the Widget Corporation of America to order 400 widgets at $2 a widget. Widget accepts the oral order and then sends out an order c...