Question

Black Diamond Company produces snow skis. Each ski requires 3 pounds of carbon fiber. The company’s...

Black Diamond Company produces snow skis. Each ski requires 3 pounds of carbon fiber. The company’s management predicts that 5,500 skis and 6,500 pounds of carbon fiber will be in inventory on June 30 of the current year and that 155,000 skis will be sold during the next (third) quarter. A set of two skis sells for $350. Management wants to end the third quarter with 4,000 skis and 4,500 pounds of carbon fiber in inventory. Carbon fiber can be purchased for $20 per pound. Each ski requires 0.4 hours of direct labor at $25 per hour. Variable overhead is applied at the rate of $13 per direct labor hour. The company budgets fixed overhead of $1,787,000 for the quarter.

BLACK DIAMOND COMPANY
Direct Labor Budget
Third Quarter
Units to be produced
Total labor hours needed
Budgeted direct labor cost
BLACK DIAMOND COMPANY
Factory Overhead Budget
Third Quarter
Total labor hours needed
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The company’s...
Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The company’s management predicts that 6,700 skis and 7,700 pounds of carbon fiber will be in inventory on June 30 of the current year and that 167,000 skis will be sold during the next (third) quarter. A set of two skis sells for $470. Management wants to end the third quarter with 5,200 skis and 5,700 pounds of carbon fiber in inventory. Carbon fiber can be...
Required information Problem 20-1A Manufacturing: Preparing production and manufacturing budgets LO C2, P1 [The following information...
Required information Problem 20-1A Manufacturing: Preparing production and manufacturing budgets LO C2, P1 [The following information applies to the questions displayed below.] Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The company’s management predicts that 5,000 skis and 6,000 pounds of carbon fiber will be in inventory on June 30 of the current year and that 150,000 skis will be sold during the next (third) quarter. A set of two skis sells for $300....
Problem 20-1A Manufacturing: Preparing production and manufacturing budgets LO C2, P1 [The following information applies to...
Problem 20-1A Manufacturing: Preparing production and manufacturing budgets LO C2, P1 [The following information applies to the questions displayed below.] Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The company’s management predicts that 5,000 skis and 6,000 pounds of carbon fiber will be in inventory on June 30 of the current year and that 150,000 skis will be sold during the next (third) quarter. A set of two skis sells for $300. Management wants...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $31.00 per direct labor-hour and $27.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $33.00 per hour. The following information pertains to Job N-60: Assembly Testing & Packaging Direct materials $ 435...
Dvorak Company produces a product that requires 5 standard pounds per unit. The standard price is...
Dvorak Company produces a product that requires 5 standard pounds per unit. The standard price is $2.50 per pound. The company produced 1,000 units that required 4,500 pounds, which were purchased at $3.00 per pound. The product also requires 3 standard hours per unit at a standard hourly rate of $17 per hour. If 1,000 units produced required 2,800 hours at an hourly rate of $16.50 per hour. In addition, the standard variable overhead cost per unit is $1.40 per...
1. Bellingham Company produces a product that requires 14 standard pounds per unit. The standard price...
1. Bellingham Company produces a product that requires 14 standard pounds per unit. The standard price is $10.5 per pound. If 2,500 units used 35,700 pounds, which were purchased at $10.08 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $ Favorable b. Direct materials quantity variance...
Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop...
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 1,320 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...
Crana Company produces a product that requires 2.6 pounds of materials per unit. The allowance for...
Crana Company produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.3 pounds and 0.1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.1 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $6 per hour, but a raise which will average $0.40 will go into effect soon. Payroll taxes are...
Cheyenne Company is planning to produce 2,700 units of product in 2017. Each unit requires 1.60...
Cheyenne Company is planning to produce 2,700 units of product in 2017. Each unit requires 1.60 pounds of materials at $5.40 per pound and a half-hour of labor at $14.00 per hour. The overhead rate is 80% of direct labor. Collapse question part (a) Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead. Direct materials $ Direct labor $ Overhead
1). XYZ Company paid for its purchases of inventory 25% in the quarter of purchase and...
1). XYZ Company paid for its purchases of inventory 25% in the quarter of purchase and 75% in the following quarter. XYZ had purchases of $100,000 in the first quarter, $200,000 in the second quarter, and $300,000 in the third quarter. How much cash was paid to suppliers in the second quarter? A. $125,000 B. $175,000 C. $200,000 D. $275,000 2). Which of the following budgets must be completed before the Raw Material Purchases Budget? A. Cash Disbursements Budget B....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT