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Edit View Hissory Bookmarks People Window Heip oard Degree PlanningD MyPath HomeConect Mail-kimberys The Magic Check AE Aerie Lace Padde x ks imported From IE.OYouTube acebook Bran Games & ara. r 07 Homework Help Save&Exit; Submit 0 Required information Ramos Co. provides the following sales forecast and production budget for the next four months: (ante 442 570 544 540 The company plans for finished goods inventory of 120 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials we tory equal to 0%of next month's production needs. Beginning direct materials inventory for April was 663 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.50 hours of direct labor at the rate of $t6 per hour. The company budgets variable overhead at the rate of $20 per direct labor hour and budgets fixed overhead of $8,000 per month. 1 Prepare a direct labor budget 2. Prepare a factory overhead budget for April, May, and June. KPrev f Next> 44 1

Explanation / Answer

Direct labor Budget April May June Budgeted production (units) 442 570 544 units direct labor hours per unit(hrs) 0.5 0.5 0.5 hours per unit total labor hours needed 221 285 272 hours labor rate (per hour) 16 16 16 per hour labor cost 3536 4560 4352 Factory overhead budget April May June total labor hours needed 221 285 272 variable factory overhead rate per unit 20 20 20 budgeted variable overhead 4420 5700 5440 budgeted fixed overhead 8,000 8,000 8,000 total factory overhead 12420 13700 13440

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