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Question 1 Swifty Furniture builds high-end hand-made dining tables. Attacus Simmons, the companys owner, has developed theYour answer is partially correct. Try again. Prepare Swiftys production budget for 2018. Assume that the desired ending inveSwifty maintains inventory of American cherry wood equal to 10% of the following quarters production needs. On December 31,

Prepare Swiftys direct labor budget for 2018. (Round answers to 0 decimal places, e.g. 5,275.) Direct Labor Budget 1st QuartAssume that because of the skill level required to make the tables, Swifty cannot easily hire additional workers to handle pe

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Answer #1

1.

Production Budget
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual
Budgeted Sales units 2541 2778 2927 2276 10522
Add : Desired Ending Inventory 556 586 456 519 519
Units Required 3097 3364 3383 2795 11041
Less : Beginning Inventory 508 556 586 456 508
Production Required 2589 2808 2797 2339 10533

2.

Purchase Budget
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual
Production Required 2589 2808 2797 2339 10533
Board feet per unit 25 25 25 25
Production Needs 64725 70200 69925 58476 263326
Budgeted Ending inventory 7020 6993 5848 10091 10091
Total DM Required 71745 77193 75773 68567 273417
Beginning Inventory 5555 7020 6993 5848 5555
Budgeted Purchases 66190 70173 68780 62719 267862
Standard Price per neck $                    5 $                    5 $                    5 $                    5
Budgeted Purchases Cost $       330,950 $       350,865 $       343,900 $       313,593 $   1,339,308

3.

Direct Labor Budget
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual
Production Required 2589 2808 2797 2339 10533
Labor hours per unit 12 12 12 12
Total Direct Labor hours required 31068 33696 33564 28069 126397
Cost per hour $                  16 $                  16 $                  16 $                  16
Direct Labor cost $       497,088 $       539,136 $       537,024 $       449,096 $   2,022,344

4.

Direct Labor Budget
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual
Production Required 2589 2808 2797 2339 10533
Labor hours per unit 12 12 12 12
Total Direct Labor hours required 31068 33696 33564 28069 126397
Regular hours (Minimum) 30000 30000 30000 30000
Cost per hour $                  16 $                  16 $                  16 $                  16
Direct Labor cost $       480,000 $       480,000 $       480,000 $       480,000 $   1,920,000
Additional Labor hours 1068 3696 3564
Cost per hour $                  24 $                  24 $                  24 $                  24
Additional Labor cost $         25,632 $         88,704 $         85,536 $                   -   $       199,872
Total Labor cost $       505,632 $       568,704 $       565,536 $       480,000 $   2,119,872
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