申論題

Sanchez Corporation is a manufacturing company that processes direct materials A and B into two products: X and Y. Although the X and Y are a matching set, they are sold individually and so the sales mix is not 1: 1. Sanchez is planning annual budget for fiscal year 2020. Here is information for 2020: 

Sanchez accounts for direct materials using a FIFO cost flow.

Sanchez uses a FIFO cost flow assumption for finished goods inventory. X is manufactured in batches of 200, and Y is manufactured in batches of 100. It takes 20 minutes to set up for a batch of X and 1 hour to set up for a batch of Y. Sanchez uses activity-based costing and has classified all overhead costs into activity cost pools as shown in the following table.

 

Required: