Kine Co. is planning to sell 1,500 boxes of grout, with production estimated at 1,392 boxes during May. Each box of grout requires 60 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.60 per pound and employees of the company are paid $18.00 per hour. Manufacturing overhead is applied at a rate of 90% of direct labor costs. Kine has 4,200 pounds of clay mix in beginning inventory and wants to have 5,200 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month?
Kine Co. is planning to sell 1,500 boxes of grout, with production estimated at 1,392 boxes during May. Each box of grout requires 60 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.60 per pound and employees of the company are paid $18.00 per hour. Manufacturing overhead is applied at a rate of 90% of direct labor costs. Kine has 4,200 pounds of clay mix in beginning inventory and wants to have 5,200 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Kine Co. is planning to sell 1,500 boxes of grout, with production estimated at 1,392 boxes during May. Each box of grout
requires 60 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.60 per pound and employees of the
company are paid $18.00 per hour. Manufacturing overhead is applied at a rate of 90% of direct labor costs. Kine has 4,200
pounds of clay mix in beginning inventory and wants to have 5,200 pounds in ending inventory.
What is the total amount to be budgeted for manufacturing overhead for the month?
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