Answer:
The following budgets are needed to calculate are as follows:
Direct labor budget
Direct materials budget
Manufacturing overhead budget
Explanation:
The three budgets put together are known as production budget which are as a result of sales budget.
When a company determines its projected sales ,it goes ahead to prepare its production budget in order to fulfill forecast sales as contained in the sales budget.The quantity to be manufactured is based on the opening inventory for the period, forecast sales quantity as well as the desired ending inventory quantity.
In order to determine production level,the opening inventory is added to forecast sales and desired ending inventory is subtracted to arrive at the estimated production units for the period.
Answer: 0 years
Explanation:
The payback period calculates the amount of time taken to recoup the initial investment made in a project or in the purchase of a machine or building. It calculates how long the cumulative cash flow generated from a project equals the cost of the project.
The payback period for both machines are zero years because the cumulative cash flow is less than the cost of the machine.
For machine A - cumulative cash flow- $-47,000 is less than -$71,000
For machine B - cumulative cash flow, -$7,000 is less than -$52,000
Explanations on how the figures were derived is found in the attached tables.
Answer:
The amount of manufacturing overhead that would have been applied to all jobs during the period is $1,289,340.00
Explanation:
For computing the manufacturing overhead, first, we have to compute the predetermined overhead rate which is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)
= $684,000 ÷ 20,000 hours
= $34.20
Now the applied overhead would be equal to
= Actual direct labor-hours × predetermined overhead rate
= 37,700 hours × $34.20
= $1,289,340.00
Answer:
The break-even point for the entire company is closest to 2 units
Explanation:
The Break even point is the point where a firm neither makes a profit nor a loss.
Break Even Point = Fixed Cost / Contribution per unit
= $45,940 /(($19,000-$10,030)+($32,000-$15,980))
= $45,940/$8,970+$16,020
= 2 units
