Budgeted Sales for Ace product Assignment | Top Universities

The following budgeted information for the year ending December 31, 2018, pertains to Rust Manufacturing Company's operations: Product Ace Bell Overhead Budgeted sales in units Selling price per unit Direct material cost per unit Direct manufacturing labor hours per unit 20,000 16,000 25 40 $ 3 2 1 Depreciation Occupancy Miscellaneous factory overhead Selling costs General and administrative costs $ 90,000 70,000 56,000 144,000 60,000 Additional information Rust Company has no beginning inventory. Production is planned so that it will equal the number of units sold.

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The cost of direct manufacturing labor is $5 per hour Depreciation and occupancy are fixed costs within the relevant range of production. Additional costs would be incurred for extra machinery and factory space if production is increased beyond current available capacity Rust Company allocates depreciation proportional to factory space. Budgeted usage is as follows: machinery use and occupancy w Ace Bell Machinery Factory space 70% 30% 60% 40% Miscellaneous factory overhead includes variable costs equal to 10% of direct manufacturing labor and also includes various fixed costs. None of the miscellaneous fixed factory overhead depends on the level of activity, although overhead attributable to a specific product is avoidable if product production ceases. Miscellaneous factory overhead is allocated at a single rate based on a percentage of budgeted direct manufacturing labor. Rust Company's selling and general and administrative costs are fixed Rust Company allocates selling costs on a weighted-unit basis. Rust Company estimates that the time required to sell a unit of Ace and a unit of Bell are equal. Rust Company allocates general and administrative costs on the basis of sales revenue. Required: For each of the items below, calculate the numeric amount for the year ended December 31, 2018. 1. Budgeted sales for Ace product 2. Budgeted sales for Bell product 3. Variable costs for Ace product 4 Variable costs for Bell product 5 Fixed costs for Ace product 6 Fixed costs for Bell product Breakeven dollar point for Ace product Breakeven dollar point for Bell product Pretax operating profit for Ace product Pretax operating profit for Bell product 7 8. 10. Get Accounting homework help today

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