Clyde's Dog Biscuit Bakery manufactures boxes of dog treats. The following is budgeted production for the last six months of 2022: July August September October November December Budgeted production (boxes) 78,000 79,400 80,200 82,000 81,500 82,800 The firm also provided the following information: Company policy calls for the ending raw materials inventory of a month to equal 25% of the next month's raw materials production needs. • Each box of dog treats requires 0.8 pounds of direct materials, at a cost of $2 per pound • Each box of dog treats requires 0.25 direct labor hours, at a cost of $15 per DL hour. •Variable OH is $1.80 per DL hour. Fixed OH is $71,820 per month. The budgeted total amount DM purchases for August is:

Clyde's Dog Biscuit Bakery manufactures boxes of dog treats. The following is budgeted production for the last six months of 2022: July August September October November December Budgeted production (boxes) 78,000 79,400 80,200 82,000 81,500 82,800 The firm also provided the following information: Company policy calls for the ending raw materials inventory of a month to equal 25% of the next month's raw materials production needs. • Each box of dog treats requires 0.8 pounds of direct materials, at a cost of $2 per pound • Each box of dog treats requires 0.25 direct labor hours, at a cost of $15 per DL hour. •Variable OH is $1.80 per DL hour. Fixed OH is $71,820 per month. The budgeted total amount DM purchases for August is:

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...

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