Yoder Furniture Works
SuperClassYoder Furniture Works
Yoder Furniture Works manufactures a high-quality, wooden rocker-recliner. A key differentiating feature of this rocker-recliner is the ease with which a hand-operated lever raises and lowers the footrest. Yoder left the prototype phase and began commercial production on January 1, 2015. A retired accountant of the founder, Steve Yoder, maintained the accounting records on a temporary basis through January 31, 2015. Now, Yoder is searching for a replacement. Potential candidates are being asked to evaluate the information from the first month of commercial operation as follows:
Cost information | |
Administrative expenses | $22,000 |
Advertising expenses | 11,700 |
Cash account balance, January 1, 2015 | 0 |
Depreciation on production equipment and factory building | 2,000 |
Depreciation on administrative offices | 750 |
Insurance on production equipment and factory building | 1,700 |
Administrative supplies expense | 550 |
Property taxes on production equipment and factory building | 425 |
Sales commissions | 18,700 |
Utilities for production equipment and factory building | 1,650 |
Wages paid to production workers | 67,800 |
Direct materials inventory, January 1, 2015 | 0 |
Direct materials inventory, January 31, 2015 | 0 |
Direct materials purchases during January 2015 | 83,400 |
Work in process inventory, January 1, 2015 | 0 |
Work in process inventory, January 31, 2015 | 0 |
Finished goods inventory, January 1, 2015 | 0 |
Production and sales information | |
Units produced during January 2015 | 600 |
Units sold during January 2015 | 490 |
Sales price per unit | $500 |
Based on the above information, answer the following questions:
Prepare flexible budgets for manufacturing costs for activity levels of 700 and 800 chairs per month.
10 years ago
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yoder_furniture_works.docx
