Reference no: EM133022272

Questions -

Q1. Tulon Inc. manufactures skateboards. The company estimated June 2019's direct labor amount to be 27,000 hours. The company allocate its manufacturing overhead based on direct labor hours. Last year, the company budgeted 20,000 direct labor hours and manufacturing overhead costs amount to $16,000.

a) Calculate the predetermined overhead rate using last year's budget.

b) Using the predetermined overhead rate in part a, determine the manufacturing overhead budget for June 2019.

Q2. Joe Barker is the production manager of Auto Parts Company (APC) and he has been asked to prepare 2020's ending finished goods budget for the S222 product. Based on historical figures, Joe determines the following information regarding direct materials, direct labor and manufacturing overhead for the S222 product.

Direct Materials Costs per Unit $1.00per unit

Direct Labor Cost per Direct Labor Hour (DLH) $11.00 per DLH

DLH per Unit 0.50 DLH per unit

Predetermined Manufacturing Overhead Rate $4.00 per DLH

Assume APC targets 9,500 units of S222 for ending inventory at the end of 2020. Calculate the value of S222 inventory that will be recorded in 2020's budgeted balance sheet.