## Solution for Cost Accounting: Foundations and Evolutions 8th Edition Chapter 8, Problem 16

by Michael R. Kinney, Cecily A. Raiborn
358 Solutions 19 Chapters 53470 Studied ISBN: 9781439044612 5 (1)

# Chapter 8, Problem Exercise 16 : Exercise 8-25   ...

 Exercise 8-25 Insert your answers in the gray-shaded cells of columns D and F. If an answer is incorrect, the word "wrong" will appear." a. Production Budget Boxes Trays Total Units of sales 42,000 30,000 Units desired in ending inv. 1,800 650 Units needed \$          - Units in beginning inv. (1,200) (800) Budgeted production b. Purchases Budget Material A Material B Total Pounds needed for production 1,15,050 87,780 Desired ending inventory 1,500 1,400 Total requirements - Less beginning inventory (1,780) (5,000) Pounds to be purchased x Cost per pound \$            0.05 \$          0.07 Total cost of purchases \$            - c. Direct Labor Budget Required hours: Boxes 12,780 Required hours: Trays 5,970 Total direct labor hours d. Overhead Budget Boxes Trays Total Activity base (hours) 12,780 5,970 x Overhead rate \$            1.60 \$          1.60 Overhead applied \$          -

## Step-By-Step Solution

#### Chapter 8, Problem Exercise 16

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