Reference no: EM132515253

Action Hero Products (AHP) produces and sells the Super Hero Figure Set (H1). The set includes chips and will interact with an online Video Game. Budget sales and production are shown below; sales are slow after the holiday, but pick up with spring movie releases. AHP began the year with 3,000 H1 in FG

                      January            February           March           April               May

Sales Forecast   3,000         4,000             7,000              9,000        10,000

Production            6,000       6,000           7,000                8,000          8,000

Each sets sells to retailers for $32. Standards to produce one set are

1. RM - 1 smart chip at $3.20 each, interactive motors\voice...$3.80, all other materials (plastics,...) $.50 each; total 7.50
2. Direct Labor - 10 minutes at $15/hour.
3. Overhead 200% of Direct Labor (DL) $.

Question 1.) Compute the standard cost of a single H1 set.

Question 2.) Compute the budgeted $ in ending inventory at May 31st.

Question 3.) Compute the purchases, in dollars, of smart chips for the month of February. AHP budgets the beginning inventory of smart chips to be 40% of that month's usage.

Question 4.) Compute the budgeted direct labor dollars for April.

Question 5.) Production for the year is budgeted at 85,000 sets of H1, what is the total budgeted overhead?