Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $3 per pou
Posted: Mon Apr 25, 2022 7:28 am
Garden Yeti manufactures garden sculptures. Each sculpture
requires 8 pounds of direct materials at a cost of $3 per pound and
0.4 direct labor hour at a rate of $18 per hour. Variable overhead
is budgeted at a rate of $3 per direct labor hour. Budgeted fixed
overhead is $4,400 per month. The company’s policy is to maintain
direct materials inventory equal to 30% of the next month’s direct
materials requirement. At the end of February the company had 7,680
pounds of direct materials in inventory. The company’s production
budget reports the following.
(1) Prepare direct materials budgets for March and
April.
(2) Prepare direct labor budgets for March
and April.
(3) Prepare factory overhead budgets for
March and April.
requires 8 pounds of direct materials at a cost of $3 per pound and
0.4 direct labor hour at a rate of $18 per hour. Variable overhead
is budgeted at a rate of $3 per direct labor hour. Budgeted fixed
overhead is $4,400 per month. The company’s policy is to maintain
direct materials inventory equal to 30% of the next month’s direct
materials requirement. At the end of February the company had 7,680
pounds of direct materials in inventory. The company’s production
budget reports the following.
(1) Prepare direct materials budgets for March and
April.
(2) Prepare direct labor budgets for March
and April.
(3) Prepare factory overhead budgets for
March and April.