Iguana, Inc., manufactures bamboo picture frames that sell for $20 each. Each fr
ID: 2448165 • Letter: I
Question
Iguana, Inc., manufactures bamboo picture frames that sell for $20 each. Each frame requires 5 linear feet of bamboo, which costs $2.20 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $10.00 per hour. Iguana has the following inventory policies:
Variable manufacturing overhead is incurred at a rate of $.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $6,900.00 ($575.00 per month) for expected production of 4,220 units for the year. Selling and administrative expenses are estimated at $680.00 per month plus $.50 per unit sold.
Compute the following for Iguana, Inc., for the second quarter (April, May, and June). (Round your dollar amounts to 2 decimal places and your per unit amounts to the nearest whole number. Round intermediate calculations to 1 decimal place for direct labor hours and to 2 decimal places for per unit costs.)
Iguana, Inc., manufactures bamboo picture frames that sell for $20 each. Each frame requires 5 linear feet of bamboo, which costs $2.20 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $10.00 per hour. Iguana has the following inventory policies:
Explanation / Answer
Answer to the first 4 parts:
March April May June July August A Budgeted sales unit 270 260 310 430 370 430 B Sales Price per unit (in$) 20 20 20 20 20 20 C=A*B Sales Revenue (in$) 5400 5200 6200 8600 7400 8600