a CK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 1 Partially correct 1.60 points

Question

a CK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 1 Partially correct 1.60 points out of 2.00 P Flag question Budget Preparation Reeves Company is preparing its master budget for july. Use the given estimates to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) a. What should total sales revenue be if territories A and B estimate sales of 14,000 and 20,000 units, respectively, and the unit selling price is $577 s 1,938,000 b. if the beginning finished goods inventory is an estimated 1,500 units and the desired ending inventory is 2.500 units, how many units should be produced? 5,000 c What dollar amount of material should be purchased at $3 per pound if each unit of product requires 2 pounds and beginning and ending materials inventories should be 4,000 and 3,000 pounds, respectively? $69,000 x d. How much direct labor cost should be incurred if each unit produced requires 1.5 hours at an hourly rate of $207 1.050000 e. How much direct labor hour? g overhead should be incurred if fixed manufacturing $67,000 and variable manufacturing overhead is $1.50 per 145.75o

Explanation / Answer

a) Territories A Territories B Total Sales (Units) 14000 20000 Sales Price per unit $                 57.00 $                57.00 Sales Revenue(A)*(B) $      798,000.00 $ 1,140,000.00 $ 1,938,000.00 b) Sales (Units) 34000 Add: Ending Inventory 2500 Less: Beginning Inventory 1500 Units Produced 35000 c ) Units Produced 35000 Material required per unit(2 Pounds) 70000 Add: Ending Inventory 3000 Total Needs 73000 Less: Beginning Inventory 4000 Raw Material Purchased(Pounds) 69000 Dollar amount of Raw Material Purchased=(69000*$3) $      207,000.00 d) Units Produced 35000 Direct Labor required per unit=(1.5 Hours )=(35000*$1.5) 52500 Hourly Rate $                 20.00 Direct Labor Cost=(52500*$20) $   1,050,000.00 e) Direct Labor Hours required 52500 Variable Overhead=($1.5*52500)=(A) $         78,750.00 Fixed Overhead=(B) $         67,000.00 Total Manufacturing Overhead=($78750+$67000)=(A)+(B) $      145,750.00

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