Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner's master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer's share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company's union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 6,100 glare filters in inventory on December 31 of the current year, and has a policy of carrying 25 percent of the following month's projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 37,200 35,600 40,200 40,400 Sales price per unit $83 $75 $83 $75 Direct labor hours per unit 2.80 2.80 2.50 2.50 Direct labor hourly rate $18 $18 $20 $20 Direct materials cost per unit $9 $9 $9 $9 Required: Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit. 1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year. a. Production budget in units: Greiner Company Production Budget (units) For the First Quarter of the Coming Year January March February Total Unit sales Desired ending inventory Total units required Less: Beginning inventory Units produced b. Direct labor budget in hours: Round your answers to two decimal places, if required. Greiner Company Direct Labor Budget (hours) For the First Quarter of the Coming Year Total EE February January March Units produced Direct labor hours per unit Total labor budget (hours) c. Direct materials cost budget: Greiner Company Direct Materials Cost Budget For the First Quarter of the Coming Year February Total January March Units produced Cost per unit Total direct materials d. Sales budget: Round unit selling price amounts to the nearest cent and use the same for subsequent requirements. Greiner Company Sales Budget (dollars) For the First Quarter of the Coming Year Total February March January Unit sales $ $1 $ Unit selling price $ Total sales revenue $ 2. Calculate the total budgeted contribution margin for Greiner Company by month and in total for the first quarter of the coming year. (CMA adapted) Greiner Company Budgeted Contrib Margin For the First Quarter of the Coming Year February Total March January Sales revenue Direct labor cost Materials cost Greiner Company Budgeted Contribution Margin For the First Quarter of the Coming Year February March Total January $ Sales revenue Direct labor cost Materials cost $ Contribution margin

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