Evans Company produces asphalt roofing materials. The production budget in bundles for Evans' most popular weight of asphalt shingle is shown for the following months: Units March 5,000 April 16,250 May 18,000 June 21,250 Each bundle produced requires (on average) 0.40 direct labor hours. The average cost of direct labor is $25 per hour. Required: Prepare a direct labor budget for March, April, and May, showing the hours needed and the direct labor cost for each month and in total. Do not include a multiplication symbol as part of your answer. Evans Company
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.
Direct Labor Budget
Evans Company produces asphalt roofing materials. The production budget in bundles for Evans' most popular weight of asphalt shingle is shown for the following months:
| Units | |||
| March | 5,000 | ||
| April | 16,250 | ||
| May | 18,000 | ||
| June | 21,250 |
Each bundle produced requires (on average) 0.40 direct labor hours. The average cost of direct labor is $25 per hour.
Required:
Prepare a direct labor budget for March, April, and May, showing the hours needed and the direct labor cost for each month and in total. Do not include a multiplication symbol as part of your answer.
| Evans Company | ||||
| Direct Labor Budget | ||||
| For March, April, and May | ||||
| March | April | May | Total | |
| Units to be produced | fill in the blank 1 | fill in the blank 2 | fill in the blank 3 | fill in the blank 4 |
| Direct labor time per unit (hours) | fill in the blank 5 | fill in the blank 6 | fill in the blank 7 | fill in the blank 8 |
| Total hours needed | fill in the blank 9 | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 |
| Cost per hour | $fill in the blank 13 | $fill in the blank 14 | $fill in the blank 15 | $fill in the blank 16 |
| Total direct labor cost | $fill in the blank 17 | $fill in the blank 18 | $fill in the blank 19 | $fill in the blank 20 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
