QUESTION 1 Vaughn Manufacturing is preparing its direct labor budget for May Pro

Question

QUESTION 1 Vaughn Manufacturing is preparing its direct labor budget for May Projections for the month are that 33800 units are to be produced and that direct labor time s three hours per unit. If the labor cost per hour is $10, what is the total budgeted direct labor cost for May? a $980,200 bs1,047 800 ? S1 014,000 od $4,056,000 QUESTION 2 Sheffield Corp, is planning to sell 500 boxes of ceramic tie, with production estmated at 570 boxes during May Each box of tile requires 44 pounds of clay mas ate of 110% of direct labor costs Sheffield has 4100 pounds of clay mix in beginning inventory and wants to have 5500 pounds in ending in entry What is the total amount to be budgeted for manufacturing overhead for the month? nd and employees of the company are paid $12 per hour. Manufacturing overhead is applied at a a $3,762 b $3,300 O c$13,200 od $15,048 aud sutmit, Click Save All Answers to save all answers

Explanation / Answer

Question - 1: C = $ 1,014,000

Question - 2: A =$ 3,762

Question - 3: A = beginning 6,000 units & ending 10,000 units

Question - 4: D = 518,000

Working notes:

Question - 1:

Production for the month of May =33,800 units

Labour hour required per unit = 3 hours

Total labour hour required = 33,800*3 = 101,400 hours

Budgeted direct labour cost =Labour hours required*Labour cost per hour

                                                =101,000*10 = $1,014,000

Question - 2:

Sales = 500 boxes

Production estimated =570 boxes

Direct labour 570* 0.50= 285 hours

Direct labour cost =285*12 =$3,420

Manufacturing overhead = 110% of Direct labour =3,420 *110/100 = $ 3,762

Question - 3:

Beginning units + Production units = Sales units +Ending units

6,000 units +104,000 units = 100,000 units +10,000 units

110,000 units =110,000 units

In the given answer, the perfect suitable is Beginning 6,000 units & ending 10,000 units.

Question - 4:

Beginning units + Production units = Sales units +Ending units

800 units +production units = 516,000 units +2,800 units

Production = 518,800 – 800 =518,000

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