# Manufacturing Costs

Attachment Week five prob 1.doc:

[see attachment for additional information relating to below questions]

Required:

a. Calculate the total manufacturing cost and the cost per unit of the coffee tables produced during the month of July (using the activity-based costing approach).

b. Assume instead that Woodruff Industries applies manufacturing overhead on a direct labor hours basis (rather than using the activity-based costing system described above). Calculate the total manufacturing cost and the cost per unit of the coffee tables produced during the month of July. (Hint: You will need to calculate the predetermined overhead application rate using the total budgeted overhead costs for 2004.)

c. Compare the per unit cost figures calculated in parts (a) and (b) above.

Which approach do you think provides better information for manufacturing managers? Explain your answer.

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Attachment: week five prob 2.doc:

[see attachment for additional information relating to below questions]

Required:

a. Prepare a sales budget in units and dollars, by month and in total, for the fourth quarter (October, November, and December) of 2004.

b. Prepare a schedule of cash collections from sales, by month and in total, for the fourth quarter of 2004.

c. Prepare a production budget in units, by month and in total, for the fourth quarter of 2004.

d. Prepare a materials purchases budget in pounds, by month and in total, for the fourth quarter of 2004.

e. Prepare a schedule of cash payments for materials, by month and in total, for the fourth quarter of 2004.

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