Blue Devil Inc. sells only one single product in both Michigan and Indiana. The company is preparing its master budget for April 2021. Use the given estimates to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) Required: d. How much direct labor cost should be incurred if each unit produced requires 1.5 hours at an hourly rate of $16? e. How much manufacturing overhead should be incurred if fixed manufacturing overhead is $60,000 and variable manufacturing overhead is $2 per direct labor hour?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Blue Devil Inc. sells only one single product in both Michigan and Indiana. The company is preparing its
Required:
d. How much direct labor cost should be incurred if each unit produced requires 1.5 hours at an hourly rate of $16?
e. How much manufacturing
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