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Given the following costs for Bently Company, classify each cost as either variable

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A) Given the following costs for Bently Company, classify each cost as either variable, fixed, or;mixed.;Total Cost at;2,000 Units;3,000 Units;Cost A;$12,900;$19,350;Cost B;12,300;16,650;Cost C;13,000;13,000;B) Robey Inc. manufactures two products, Extra and Basic. Overhead costs consist of setting up;machines, $200,000, machining, $450,000, and inspecting, $150,000. Additional information on;the two products is;Extra;Basic;Total;Direct labor hours;15,000;25,000;40,000;Machine setups;600;400;1,000;Machine hours;24,000;26,000;50,000;Inspections;800;700;1,500;Show Computations;i) Determine the overhead applied to Extra using traditional costing based on direct labor hours;ii) Determine the overhead applied to Extra using activity based costing;iii) Does it appear activity based costing would be worthwhile in this case? Why?;Hose Inc. is preparing its budget for the coming year, 2014. The first step is to plan for the first quarter of that coming year. Hose gathered the following information from the managers.;Sales;Unit sales for November 2013;Unit sales for December 2013;Expected unit sales for January 2014;Expected unit sales for February 2014;Expected unit sales for March 2014;Expected unit sales for April 2014;Expected unit sales for May 2014;Unit selling price per hose;112,500;102,083;113,333;112,500;116,667;125,000;137,500;$12;Hose likes to keep 10% of the next month?s unit sales in ending inventory. All sales are on account.;85% of the Accounts Receivable are collected in the month of sale, and;15% of the Accounts Receivable are collected in the month after sale.;Accounts receivable on December 31, 2013, totaled $183,750.;Direct Materials;Item;Plastic;Rubber;Amount used per unit;12 oz @ 6? per oz;4 oz @ 5? per oz;Inventory, Dec. 31,2013;3,883.125 lbs;1,294.375 lbs;Hose likes to keep 5% of the materials needed for the next month in its ending inventory.;materials is made within 15 days.;50% is paid in the month of purchase, and;50% is paid in the month after purchase.;Accounts Payable on December 31, 2013, totaled $120,595.;Payment for;Direct Labor;Labor requires 12 minutes per unit for completion and is paid at a rate of $10 per hour.;Manufacturing Overhead;Indirect materials;Utilities;Salaries;Depreciation;Property taxes;Janitorial;30? per labor hour;45? per labor hour;$42,000 per month;$16,800 per month;$2,500 per month;$1,300 per month;Selling and Administrative;Variable selling and administrative cost per unit is $1.62.;Advertising;Salaries;Depreciation;$15,000 a month;$72,000 a month;$2,500 a month;Other Information;The Cash balance on December 31, 2013, totaled $100,500, but management has decided it would like;to maintain a cash balance of at least $150,000 beginning on January 1, 2014.;Dividends are paid each month at the rate of $2.50 per share for 5,000 shares outstanding. The company has an open line of credit with Last National Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 8% interest.;Hose borrows on the first day of the month and repays on the last day of the month.;A $500,000 equipment purchase is planned for February.;Required;Prepare the following for January 2014;a)Sales budget.;b)Production budget.;c)Direct materials budget.;d)Direct labor budget.;e)Manufacturing overhead budget;f)Selling and administrative budget.;g)Expected cash collections from customers.;h)Expected payments for materials purchases.;i)Cash budget.

 

Paper#80709 | Written in 18-Jul-2015

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