Sunland Company is planning to sell 1100 boxes of ceramic tile, with production

Question

Sunland Company is planning to sell 1100 boxes of ceramic tile, with production estimated at 470 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.50 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $18 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Sunland has 4000 pounds of clay mix in beginning inventory and wants to have 3700 pounds in ending inventory.

What is the total amount to be budgeted for manufacturing overhead for the month?

Explanation / Answer

Budgeted manufacturing overhead :

Budgeted direct labour cost = 470*.50*18 = 4230

Manufacturing overhead = 4230*110% = 4653

4653 is the total amount to be budgeted for manufacturing overhead for the month.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.