Operations And Supply Chain Management Assignment Help – Comprehensive

Operations And Supply Chain Management Assignment Help – Comprehensive

Question – Comprehensive problem with ABC costing. Pet Transport Company makes two pet carriers, the Cat-
allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller.
Information for the two products for the month of April is given in the following tables:
Pet Transport accounts for direct materials using a FlFO cost flow assumption.

Pet Transport uses a FIFO cost flow assumption for finished good inventory.
Pet Transport uses an activity-based costing system and classifies overhead into three activity pools:
Setup, Processing and Inspection. Activity rates for these activities are $100 per setup hour, $5 per
machine hour, and $16 per inspection hour, respectively. Other information follows:

…Read MoreNon-manufacturing fixed costs for March equal $36,000, of which half are salaries. Salaries are
expected to crease 5% in April. The only variable non-manufacturing cost is sales commission, equal
to 1% of sales revenue.
Prepare the following for April:
1. Revenues budget
2. Production budget in units
3. Direct material usage budget and direct material purchases budget
4. Direct manufacturing labor cost budget
5. Manufacturing overhead cost budgets for each of the three activities
6. Budgeted unit cost of ending finished goods inventory and ending inventories budget
7. Cost of goods sold budget
8. Non-manufacturing costs budget
9. Budgeted income statement (ignore income taxes) …Read Less

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