direct labor hour at a rate of $18 per hour. Varlable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $4.500 per month. The company's policy is to maintain direct materials Inventory equal to 30% of the next month's dire materials requirement. At the end of February the company had 7,440 pounds of direct materials In Inventory. The company's production budget reports the following. Production Budget Units to produce April March 3,100 4,488 (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 the tabs below. Direct labor hours needed Required 1 Required 2 Required 3 Prepare factory overhead budgets for March and April. GARDEN YETI Factory Overhead Budget Budgeted variable overhead May 4,600 Budgeted total factory overhead March $ $ April 0 $ 0 $ 0 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $2 per pound and 0.4
direct labor hour at a rate of $18 per hour. Variable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed
overhead is $4,500 per month. The company's policy is to maintain direct materials Inventory equal to 30% of the next month's direct
materials requirement. At the end of February the company had 7,440 pounds of direct materials In Inventory. The company's
production budget reports the following.
Production Budget
Units to produce
(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.
Required 1 Required 2
April
March
3,100 4,400
Complete this question by entering your answers in the tabs below.
Direct labor hours needed
Budgeted variable overhead
May
4,600
Prepare factory overhead budgets for March and April.
GARDEN YETI
Factory Overhead Budget
Required 3
Budgeted total factory overhead
March
$
$
April
0 $
0 $
< Required 2
0
0
Required 3 >
||
Transcribed Image Text:Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $2 per pound and 0.4 direct labor hour at a rate of $18 per hour. Variable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $4,500 per month. The company's policy is to maintain direct materials Inventory equal to 30% of the next month's direct materials requirement. At the end of February the company had 7,440 pounds of direct materials In Inventory. The company's production budget reports the following. Production Budget Units to produce (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. Required 1 Required 2 April March 3,100 4,400 Complete this question by entering your answers in the tabs below. Direct labor hours needed Budgeted variable overhead May 4,600 Prepare factory overhead budgets for March and April. GARDEN YETI Factory Overhead Budget Required 3 Budgeted total factory overhead March $ $ April 0 $ 0 $ < Required 2 0 0 Required 3 > ||
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