Slopes Inc. manufactures and sells snowboards. Slopes manufactures a single model, the Pipex. In the summer of 2015, Slopes s accountant gathered the following data to prepare budgets for 2016. These units are standard in the lumber industry. Wage rate = $25/hr. Materials and Labour Requirements Direct materials Wood………………….5 board-feet per snowboard Fibreglass……………………6 yards per snowboard Direct labour………………..5 hours per snowboard Slopes s CEO expects to sell 1,200 snowboards during 2016 at an estimated retail price of $540 per board. Further, she expects 2016 beginning inventory to be 100 boards and would like to end 2016 with 200 snowboards in stock. The company follows FIFO for inventory flow. Direct Material Inventories Beginning Inventory Ending Inventory January 1, 2016 December 31, 2016 Wood…………………..2,000 feet…………….1,500 feet Fibreglass…………….1,000 yards……………2,000 yards The beginning inventory of wood was purchased at $34 per board foot and fibreglass was purchased at $5.80 per yard. Prices have now risen to $36 per board foot of wood and $6 per yard of fibreglass. Variable manufacturing overhead is allocated at the rate of $8.40 per direct manufacturing labour-hour. Fixed manufacturing overhead costs are budgeted at $78,000 for 2016. Variable marketing costs are allocated at the rate of $300 per sales visit, and the marketing plan calls for 36 sales visits d
