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 $15 per hour. Varlable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $4,300 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 7,920 pounds of direct materials In Inventory. The company's production budget reports the following. Production Budget Units to produce March April 3,300 4,600 May 4,800 (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.
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 $15 per hour. Varlable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $4,300 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 7,920 pounds of direct materials In Inventory. The company's production budget reports the following. Production Budget Units to produce March April 3,300 4,600 May 4,800 (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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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 $15 per hour. Varlable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed
overhead is $4,300 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 7,920 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.
Complete this question by entering your answers in the tabs below.
March April May
3,300 4,600 4,800
Required 1
Required 3
Prepare direct materials budgets for March and April.
GARDEN YETI
Direct Materials Budget
Units to produce
Required 2
Materials needed for production (pounds)
Total materials required (pounds)
Materials to purchase (pounds)
Cost of direct materials purchases
March
< Required 1
April
Required 2 >
Transcribed Image Text:Required 1 Required 2
Prepare direct labor budgets for March and April. (Round "DL hours required per unit" answers to two decimal places.)
GARDEN YETI
Direct Labor Budget
Units to produce
Direct labor hours needed
Cost of direct labor
Required 1 Required 2
Direct labor hours needed
Budgeted variable overhead
Required 3
Budgeted total factory overhead
March
Required 3
Prepare factory overhead budgets for March and April.
GARDEN YETI
Factory Overhead Budget
April
< Required 1
March
< Required 2
April
Required 3 >
Required 3 >
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