90.2K

Verified Solution

Link Copied!

Question Help

Alcott

Alcott Company makes and sells artistic frames for pictures of?weddings, graduations, and other special events. Ron Bahar

Bahar?, the?controller, is responsible for preparing Alcott

Alcott?'s master budget and has accumulated the following information for 2018

2018?:

CoursHeroTranscribedText: Alcott Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron Bahar, the controller, is responsible for preparing Alcott's master budget and has accumulated the following information for 2018: a (Click the icon to view some of the nancial information.) 0 (Click the icon to view additional information.) Read the uirements. combine both budgets in one schedule. The direct manufacturing labor cost budget should include labor-hoursian'd show the details for each labor cost category. Start the schedule by preparing the production budget and calculating the total hours of direct manufacturing labor time needed for the three months in the quarter, then calculate the values for the quarter. Finish by preparing the bottom portion of the schedule for the direct manufacturing labor by month, then quarter. (Enter the direct manufacturing labor-hours per unit to one decimal place, X.X. Do not round interim calculations, and then enter all amounts in the budget [other than the direct manufacturing labor-hours per unit] to the nearest whole number.) Alcott Company Budget for Production and Direct Manufacturing Labor For the Quarter Ended March 31, 2018 January February March Budgeted sales (units) | | Add target ending nished goods inventory (units) I I | | Total requirements (units) Deduct beginning nished goods inventory (units) Units to be produced Direct manufacturing labor-hours per unit ll Total hours of direct manufacturing labor time needed 2018 January February March April May Estimated sales in units 17,000 18,000 9,000 10,000 10,000 Selling price $ 54.00 $ 50.50 $ 50.50 $ 50.50 $ 50.50 Direct manufacturing labor-hours per unit 3.5 3.5 1.0 1.0 1.0 Wage per direct manufacturing labor-hour $ 12.00 $ 12.00 $ 12.00 $ 11.00 $ 11.00o More Info - X In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.50 per hour, worker's compensation insurance of $0.20 per hour, employee medical insurance of $0.30 per hour, and Social Security taxes. Assume that as of January 1, 2018, the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benets paid by Alcott on its direct manufacturing employees is treated as a direct manufacturing labor cost Alcott has a labor contract that calls for a wage increase to $11 per hour on April 1, 2018. New labor-saving machinery has been installed and will be fully operational by March 1, 2018. Alcott expects to have 22,500 frames on hand at December 31, 2017, and it has a policy of carrying an end-ofmonth inventory of 100% of the following month's sales plus 50% of the second following month's sales

Answer & Explanation Solved by verified expert

See Answer