Lowell Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2020.
January February March April May
Estimated unit sales 10,500 11,700 8,400 8,900 9,000
Sales price per unit $50.10 $47.10 $47.10 $47.10 $47.10
Direct labor hours per unit 2.1 2.1 1.5 1.5 1.5
Wage per direct labor hour $9.00 $9.00 $9.00 $10.00 $10.00
Lowell has a labor contract that calls for a wage increase to $10.00 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1.
Lowell expects to begin the year with 18,690 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month’s sales, plus 70% of the second following month’s sales.
a) Prepare a production budget for Lowell Company by month and for the first quarter of the year.
b) Prepare a direct labor budget for Lowell Company by month and for the first quarter of the year. The direct labor budget should include direct labor hours.
Answers: 3
Another question on Business
Business, 22.06.2019 05:30
From a business perspective, an information system provides a solution to a problem or challenge facing a firm and represents a combination of management, organization, and technology elements. the organization's hierarchy, functional specialties, business processes, culture, and political interest groups are components of which element of information systems?
Answers: 1
Business, 22.06.2019 10:00
Scenario: you have advised the owner of bond's gym that the best thing to do would be to raise the price of a monthly membership. the owner wants to know what may happen once this price increase goes into effect. what will most likely occur after the price of a monthly membership increases? check all that apply. current members will pay more per month. the quantity demanded for memberships will decrease. the number of available memberships will increase. the owner will make more money. bond's gym will receive more membership applications.
Answers: 1
Business, 22.06.2019 22:10
Afirm plans to begin production of a new small appliance. the manager must decide whether to purchase the motors for the appliance from a vendor at $10 each or to produce them in-house. either of two processes could be used for in-house production; process a would have an annual fixed cost of $200,000 and a variable cost of $7 per unit, and process b would have an annual fixed cost of $175,000 and a variable cost of $8 per unit. determine the range of annual volume for which each of the alternatives would be best. (round your first answer to the nearest whole number. include the indifference value itself in this answer.)
Answers: 2
Business, 23.06.2019 02:00
How much more output does the $18 trillion u.s. economy produce when gdp increases by 3.0 percen?
Answers: 1
You know the right answer?
Lowell Company makes and sells artistic frames for pictures. The controller is responsible for prepa...
Questions
Physics, 18.03.2020 00:18
Mathematics, 18.03.2020 00:18
Physics, 18.03.2020 00:18
Mathematics, 18.03.2020 00:19
History, 18.03.2020 00:19
Computers and Technology, 18.03.2020 00:19
Mathematics, 18.03.2020 00:19
Social Studies, 18.03.2020 00:19
