Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $4 per pound and 0.4 direct labor hours at a rate of $11 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $4,200 per month. The company's policy is to maintain direct materials inventory equal to 30% of the next month's materials requirement. At the end of March the company had 5,380 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget March April May Units to be produced 3,600 5,200 5,100 (1) Prepare direct materials budgets for March and April. Prepare direct labor budgets for March and April Prepare factory overhead budgets for March and April.
Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $4 per pound and 0.4 direct labor hours at a rate of $11 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $4,200 per month. The company's policy is to maintain direct materials inventory equal to 30% of the next month's materials requirement. At the end of March the company had 5,380 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget March April May Units to be produced 3,600 5,200 5,100 (1) Prepare direct materials budgets for March and April. Prepare direct labor budgets for March and April Prepare factory overhead budgets for March and April.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ornamental Sculptures Mfg.
manufactures garden sculptures.
Each sculpture requires 8 pounds
of direct materials at a cost of $4
per pound and 0.4 direct labor
hours at a rate of $11 per hour.
Variable manufacturing overhead
is charged at a rate of $3 per
direct labor hour. Fixed
manufacturing overhead is
$4,200 per month. The company's
policy is to maintain direct
materials inventory equal to 30%
of the next month's materials
requirement. At the end of March
the company had 5,380 pounds
of direct materials in inventory.
The company's production
budget reports the following.
Production Budget March April
May Units to be produced 3,600
5,200 5,100 (1) Prepare direct
materials budgets for March and
April. Prepare direct labor budgets
for March and April Prepare
factory overhead budgets for
March and April.
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