Engineering, 10.06.2020 10:57 MaTh8809
The ABC Corporation manufactures and sells two products: T1 and T2. 20XX budget for the company is given below:
Projected Sales Units Price T1 60,000 $165 T2 40,000 $250
Inventories in Units January 1, 20XX December 31, 20XX T1 20,000 25,000 T2 8,000 9,000
The following direct materials are used in the two products: Amount used per unit Direct Material Unit T1 T2 A pound 4 5 B pound 2 3 C each 0 1
Anticipated Inventories Direct Material Purchase Price January 1, 2012 December 31, 2012 A $12 32,000 lb. 36,000 lb. B $5 29,000 lb. 32,000 lb. C $3 6,000 units 7,000 units
Projected direct manufacturing labor requirements and rates for 20XX are as follows: Hours per Unit Rate per Hour T1 2 $12 T2 3 $16
4
Manufacturing overhead is allocated at the rate of $20 per direct manufacturing labor-hour. Marketing and distribution costs are projected to be $100,000 and $ 300,000, respectively.
a. What is the total expected revenue (in dollars) for 20XX? b. What is the expected production level (in units) both for T1 and T2? c. What is the total direct material purchases (in dollars) for each type of direct material? d. What is the total direct manufacturing labor cost (in dollars)? e. What is the total overhead cost (in dollars)? f. What is the total cost of goods sold (in dollars)? g. What is the total expected operating income (in dollars) for 20XX?
Answers: 3
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The ABC Corporation manufactures and sells two products: T1 and T2. 20XX budget for the company is g...
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