Hale Specialties manufactures, among other things, woolen blankets for the athle

Question

Hale Specialties manufactures, among other things, woolen blankets for the athletic teams of the two local high schools. The company sews the blankets from fabric and sews on a logo patch purchased from the licensed logo store site. The teams are as follows: . Broncos, with red blankets and the Broncos logo Rams, with black blankets and the Rams logo Also, the black blankets are slightly larger than the red blankets. The budgeted direct-cost inputs for each product in 2017 are as follows: Rams Blanket Broneos Blanket 5 yards 0 yards Red woolfabric Black wool fabric Broncos lopo patches Rams loga patches Direct manufacturing labor 4 hours 5 hours Unit data pertaining to the direct materials for March 2017 are as follows: Actual Beginning Direct Materials Imentory (/2017 Bronces Blanket 40 yards Rams Blanket 0 yards 20 Red woolfabric Black wool fabric Broncos logo patches Rams loga patches 50 65 Target Ending Direct Materials Inventory R31/2017) Red woolfabric Black wool fabric Broncos logo petches Rams logo patches Broncos Blanket 30 yards 30 Rams Blanket 0yards 20 30 Unit cost data for direct-cost inputs pertaining to February 2017 and March 2017 are as follows: February 2017(actual March 2017 (budgeted) S11 13 S1D Red wool fabric er yard) Black wool fabric Iper yard) Broncos logo patches (per patchl Rams logo patches (per patch Manufacturing labor cost per hour 27 28 Manufacturing overhead (both variable and fixed) is allocated to each blanket on the basis of budgeted direct manufacturing labor-hours per blanket. The budgeted variable manufacturing

Explanation / Answer

Sales Budget Broncos Rams Sales units 140 195 Selling Price/unit 305 378 Total sale value 42700 73710 Production budget Sales units 140 195 Target ending units 24 29 Total units needed 164 224 Less: Available op. units 14 19 Production needed 150 205 Direct Materials Broncos Rams Production needed 150 205 Red wool (Yds.) Broncos Logo(No.) Black wool(Yds.) Rams Logo(No.) Needed for production 750 150 1230 205 Target ending units 30 30 20 30 Total needed 780 180 1250 235 Less: Available op. units 40 50 20 65 Purchases needed 740 130 1230 170 Issues to prodn. At FIFO Available op. units 40 50 20 65 Cost/unit 10 8 14 7 Total cost 400 400 280 455 Bal.from Current purchases 710 100 1210 140 Cost/unit 11 8 13 9 Total cost 7810 800 15730 1260 Total direct material cost of issues to prodn. 8210 1200 16010 1715 Direct labor Broncos Rams Production needed 150 205 Mfg.Labor hrs./unit 4 5 Total Mfg. labor hrs. 600 1025 Mfg. Labor cost /hr. 27 28 Total Mfg. labor cost 16200 28700 Manufacturing OH budget Total Mfg. labor hrs. 600 1025 Variable mfg.Oh cost /hr. 17 17 Total variable mfg. OH 10200 17425 Total 27625 Fixed mfg. OH 14625 Total Mfg. OH 42250 Ending Inventories Budget Red wool (Yds.) Broncos Logo(No.) Black wool(Yds.) Rams Logo(No.) In units 30 30 20 30 Cost/unit 11 8 13 9 Total cost 330 240 260 270 1100

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