Makers Ltd. manufactures and sells two products, Abba and Baba. In July 2018 Makers’ Budget Department gathered the following data in order to prepare the individual budgets in the master budget for 2019: 2019 Projected Sales: Product Unit Price Abba 80,000 $ 190 Baba 60,000 $ 270 2019 Inventories in Units: Expected Target: Product January 1, 2019 December 31, 2019 Abba        22,000                  26,000 Baba        9,000                    10,000 To produce 1 unit of Abba and Baba, the following direct materials are used: Direct Material Unit    Abba Baba A                     Pounds 5        6 B                      Pounds 3       4 C                       Each     0       1 Projected data for 2019 with respect to direct materials are as follows: Direct Material Purchase Price: Target Inventories            January 1, 2019             December 31, 2019 A $14   33,000 pounds             37,000 pounds B $ 6     28,000 pounds            30,000 pounds C $ 4       6,000 units                 7,000 units Projected direct manufacturing labor requirements and rates for 2019 are as follows: Product Hours per Unit Rate per Hour Abba             3               $14 Baba             4                $18 Manufacturing overhead is allocated at the rate of $20 per direct manufacturing labor-hour. Required: 1) Prepare the following budgets for 2019: e) Direct manufacturing labor budget (in dollars)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Makers Ltd. manufactures and sells two products, Abba and Baba. In July 2018 Makers’
Budget Department gathered the following data in order to prepare the individual budgets in
the master budget for 2019:
2019 Projected Sales:
Product Unit Price
Abba 80,000 $ 190
Baba 60,000 $ 270
2019 Inventories in Units:
Expected Target:
Product January 1, 2019 December 31, 2019
Abba        22,000                  26,000
Baba        9,000                    10,000
To produce 1 unit of Abba and Baba, the following direct materials are used:
Direct Material Unit    Abba Baba
A                     Pounds 5        6
B                      Pounds 3       4
C                       Each     0       1
Projected data for 2019 with respect to direct materials are as follows:
Direct Material Purchase Price:
Target Inventories
           January 1, 2019             December 31, 2019
A $14   33,000 pounds             37,000 pounds
B $ 6     28,000 pounds            30,000 pounds
C $ 4       6,000 units                 7,000 units
Projected direct manufacturing labor requirements and rates for 2019 are as follows:
Product Hours per Unit Rate per Hour
Abba             3               $14
Baba             4                $18
Manufacturing overhead is allocated at the rate of $20 per direct manufacturing labor-hour.
Required:
1) Prepare the following budgets for 2019:

e) Direct manufacturing labor budget (in dollars)

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