Evaluate atlantics total direct labor cost

Assignment Help HR Management

Reference no: EM1341318

How to evaluate how many bicycles Atlantic Corporation expects to produce.

Atlantic Corporation assembles bicycles by purchasing frames, wheels, and other parts from various suppliers. Consider the following data:
- The company plans to sell 25,000 bicycles during each month of the year's first quarter.
- A review of the accounting records disclosed a finished-goods inventory of 1,400 bicycles on January 1 and an expected finished-goods inventory of 1,850 bicycles on January 31.
- Atlantic has 4,300 wheels in inventory on January 1, a level that is expected to drop by 5% at month-end.
- Assembly time totals 30 minutes per bicycle, and workers are paid $14 per hour.
- Atlantic accounts for employee benefits as a component of direct labor cost. Pension and insurance costs average $2 per hour (total); additionally, the company pays Social Security taxes that amount to 8% of gross wages earned.

Required:
A. How many bicycles does Atlantic expect to produce (i.e., assemble) in January?
B. How many wheels must be purchased to satisfy production needs?
C. Evaluate Atlantic's total direct labor cost.
D. Briefly describe how the company's purchasing activity would affect the end-of-period balance sheet.

Reference no: EM1341318

Questions Cloud

Determine the labor cost : Labor Cost - Hourly Plan and Piece Rate Plan: Determine the labor cost each day of the week for an employee under and hourly-rate plan

Show the equivalent units of production using fifo : Equivalent units of production using FIFO - Evaluate the number of equivalent units with respect to both materials used and labor used in the production department for April using the FIFO method.

Describe the role of the national labor relations board : Labor-management relations-Describe the role of the National Labor Relations Board and the legal environment of labor-management relations

Union issues : why health care employees would want to join a union and In addition, three reasons why health care employers would be against this

Evaluate atlantics total direct labor cost : Evaluate Atlantic's total direct labor cost and Briefly describe how the company's purchasing activity would affect the end-of-period balance sheet.

Describe the process of how a union forms : Describe the process of how a union forms in an organization and what happens in this process of collective bargaining.

Determine the total amount of budgeted direct labor : Determine the total amount of budgeted direct labor - How much is the total amount of budgeted direct labor for April?

Explain about lowell-waltham system : Lowell-Waltham System - It analyzes the Lowell-Waltham System and the circumstances that led to its deterioration.

Trade union practices in germany : Trade union practices in Germany -Will this system work in U.S. businesses and What will be consequences for the U.S. economy

User Account

All Pages