ments: ACG 2071-001: xya tml er 20 Help Ornamental Sculptures Mfg. manufactures

Question

ments: ACG 2071-001: xya tml er 20 Help Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $3 per pound and 0.4 direct labor hours at a rate of $10 per hour. Variable manufacturing overhead is charged at a rate of $2 per direct labor hour Fixed manufacturing overhead is $3,600 per month. The company's policy is to maintain direct materials inventory equal to 20% of the next month's materials requirement. At the end of March the company had 4,880 pounds of direct materials in inventory. The company's production budget reports the following 3,50 5,200 4, 800 ok (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. Complete this question by entering your answers in t he tabs below ired 2 Prepare direct materials budgets for March and April s Budget

Explanation / Answer

1. Direct Materials Budgets for March and April ORNAMENTAL SCULPTURES MFG Direct Materials Budget For the Months of March and April March April Budgeted Production (units) 3500 5200 Materials requirements per unit (lbs) 8 8 Materials needed for procuction (lbs) 28000 41600 Budgeted ending inventory (lbs) 8320 7680 Total Material Requirement (lbs) 36320 49280 Budgeted beginning inventory (lbs) 5600 8320 Materials to be purchased (lbs) 30720 40960 Direct material cost per lb $3 $3 Total Budgeted Direct material $92,160 $122,880 Budgeted ending inventory (lbs) = next months material needed for production x 20% In May budgeted production is 4800 unit Budgeted ending inventory for April = (4800 x 8) x 20% = 7680 Budgeted beginning inventory (lbs) = current months material needed for production x 20% 2. Direct Labour Budgets for March and April ORNAMENTAL SCULPTURES MFG Direct Labour Budget For the Months of March and April March April Budgeted Production (units) 3500 5200 DL hours required per unit 0.4 0.4 Total Direct labour hours needed 1400 2080 Direct Labour Rate per hour $10 $10 Total Budgeted Direct Labour $14,000 $20,800 3.Factory Overhead Budgets for March and April ORNAMENTAL SCULPTURES MFG Factory Overhead Budget For the Months of March and April March April Total Direct labour hours needed 1400 2080 VOH rate per direct labour hour $2 $2 Budgeted Variable Overhead $2,800 $4,160 Budgeted Fixed Overhead $3,600 $3,600 Total Budgeted Factory Overhead $6,400 $7,760

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

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