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Animal Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Input Prices Direct materials Plastic Metal Direct manufacturing labor $5 per pound $4 per pound $10 per direct manufacturing labor-hour Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials 6 pounds 1 pound Plastic 4 pounds 0.5 pounds Metal 5 hours Direct manufacturing labor-hours Machine-hours (MH) 3 hours 11 MH 19 MH Inventory Information, Direct Materials Plastic Metal 70 pounds 65 pounds $217 Beginning inventory Target ending inventory 290 pounds 410 pounds Cost of beginning inventory $1,102 Animal Gear accounts for direct materials using a FIFO cost-flow assumption. Sales and Inventory Information, Finished Goods Cat-allac Dog-eriffic Expected sales in units 530 225 $ 310 $ 205 Selling price Target ending inventory in units Beginning inventory in units 30 10 10 19 $1,000 Beginning inventory in dollars $4,650 Animal Gear uses a FIFO cost-flow assumption for finished-goods inventory. uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $105 per setup-hour, $10 per machine-hour, and $15 per inspection-hour, respectively. Other information follows: Cost-Driver Information Cat-allac Dog-eriffic Number of units per batch Setup time per batch 25 1.50 hours 1.75 hours 0.7 hour Inspection time per batch 0.5 hour If necessary, round up to calculate number of batches. Nonmanufacturing fixed costs for March equal $32,000, half of which are salaries. Salaries are ex- pected to increase 5% in April. Other nonmanufacturing fixed costs will remain the same. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue.

Animal Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Input Prices Direct materials Plastic Metal Direct manufacturing labor $5 per pound $4 per pound $10 per direct manufacturing labor-hour Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials 6 pounds 1 pound Plastic 4 pounds 0.5 pounds Metal 5 hours Direct manufacturing labor-hours Machine-hours (MH) 3 hours 11 MH 19 MH Inventory Information, Direct Materials Plastic Metal 70 pounds 65 pounds $217 Beginning inventory Target ending inventory 290 pounds 410 pounds Cost of beginning inventory $1,102 Animal Gear accounts for direct materials using a FIFO cost-flow assumption. Sales and Inventory Information, Finished Goods Cat-allac Dog-eriffic Expected sales in units 530 225 $ 310 $ 205 Selling price Target ending inventory in units Beginning inventory in units 30 10 10 19 $1,000 Beginning inventory in dollars $4,650 Animal Gear uses a FIFO cost-flow assumption for finished-goods inventory. uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $105 per setup-hour, $10 per machine-hour, and $15 per inspection-hour, respectively. Other information follows: Cost-Driver Information Cat-allac Dog-eriffic Number of units per batch Setup time per batch 25 1.50 hours 1.75 hours 0.7 hour Inspection time per batch 0.5 hour If necessary, round up to calculate number of batches. Nonmanufacturing fixed costs for March equal $32,000, half of which are salaries. Salaries are ex- pected to increase 5% in April. Other nonmanufacturing fixed costs will remain the same. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 11MCQ: JackMan Company produces die-cast metal bulldozers for toy shops. JackMan estimated the following...
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Q.Prepare Production budget in units for April.

Animal Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Input Prices Direct materials Plastic Metal Direct manufacturing labor $5 per pound $4 per pound $10 per direct manufacturing labor-hour
Transcribed Image Text:Animal Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Input Prices Direct materials Plastic Metal Direct manufacturing labor $5 per pound $4 per pound $10 per direct manufacturing labor-hour
Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials 6 pounds 1 pound Plastic 4 pounds 0.5 pounds Metal 5 hours Direct manufacturing labor-hours Machine-hours (MH) 3 hours 11 MH 19 MH Inventory Information, Direct Materials Plastic Metal 70 pounds 65 pounds $217 Beginning inventory Target ending inventory 290 pounds 410 pounds Cost of beginning inventory $1,102 Animal Gear accounts for direct materials using a FIFO cost-flow assumption. Sales and Inventory Information, Finished Goods Cat-allac Dog-eriffic Expected sales in units 530 225 $ 310 $ 205 Selling price Target ending inventory in units Beginning inventory in units 30 10 10 19 $1,000 Beginning inventory in dollars $4,650 Animal Gear uses a FIFO cost-flow assumption for finished-goods inventory. uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $105 per setup-hour, $10 per machine-hour, and $15 per inspection-hour, respectively. Other information follows: Cost-Driver Information Cat-allac Dog-eriffic Number of units per batch Setup time per batch 25 1.50 hours 1.75 hours 0.7 hour Inspection time per batch 0.5 hour If necessary, round up to calculate number of batches. Nonmanufacturing fixed costs for March equal $32,000, half of which are salaries. Salaries are ex- pected to increase 5% in April. Other nonmanufacturing fixed costs will remain the same. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue.
Transcribed Image Text:Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials 6 pounds 1 pound Plastic 4 pounds 0.5 pounds Metal 5 hours Direct manufacturing labor-hours Machine-hours (MH) 3 hours 11 MH 19 MH Inventory Information, Direct Materials Plastic Metal 70 pounds 65 pounds $217 Beginning inventory Target ending inventory 290 pounds 410 pounds Cost of beginning inventory $1,102 Animal Gear accounts for direct materials using a FIFO cost-flow assumption. Sales and Inventory Information, Finished Goods Cat-allac Dog-eriffic Expected sales in units 530 225 $ 310 $ 205 Selling price Target ending inventory in units Beginning inventory in units 30 10 10 19 $1,000 Beginning inventory in dollars $4,650 Animal Gear uses a FIFO cost-flow assumption for finished-goods inventory. uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $105 per setup-hour, $10 per machine-hour, and $15 per inspection-hour, respectively. Other information follows: Cost-Driver Information Cat-allac Dog-eriffic Number of units per batch Setup time per batch 25 1.50 hours 1.75 hours 0.7 hour Inspection time per batch 0.5 hour If necessary, round up to calculate number of batches. Nonmanufacturing fixed costs for March equal $32,000, half of which are salaries. Salaries are ex- pected to increase 5% in April. Other nonmanufacturing fixed costs will remain the same. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue.
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