Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $3 per pound and 0.4 direct labor hours at a rate of $14 per hour. Varlable manufacturing overhead is charged at a rate of $2 per direct labor hour. Fixed manufacturing overhead IS $3,700 per month. The company's policy Is to maintain direct materials Inventory equal to 20% of the next month's materlals requirement. At the end of February the company had 5,880 pounds of direct materials In inventory. The company's production budget reports the following. Production Budget Units to be produced April 5,100 Мay 4,900 March 3,700 (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.
Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $3 per pound and 0.4 direct labor hours at a rate of $14 per hour. Varlable manufacturing overhead is charged at a rate of $2 per direct labor hour. Fixed manufacturing overhead IS $3,700 per month. The company's policy Is to maintain direct materials Inventory equal to 20% of the next month's materlals requirement. At the end of February the company had 5,880 pounds of direct materials In inventory. The company's production budget reports the following. Production Budget Units to be produced April 5,100 Мay 4,900 March 3,700 (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.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
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Chapter9: Standard Costing: A Functional-based Control Approach
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Problem 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...
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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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(1a) Prepare direct materials budgets for March and April.
(1b) Prepare direct labor budgets for March and April.
(1c) Prepare factory
Transcribed Image Text:Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 8 pounds of direct
materials at a cost of $3 per pound and 0.4 direct labor hours at a rate of $14 per hour. Varlable manufacturing
overhead Is charged at a rate of $2 per direct labor hour. Fixed manufacturing overhead is $3,700 per month.
The company's policy Is to maintain direct materlals inventory equal to 20% of the next month's materlals
requirement. At the end of February the company had 5,880 pounds of direct materials in inventory. The
company's production budget reports the following.
Production Budget
Units to be produced
April
5,100
May
4,900
March
3,700
(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.
Required 1
Required 2
Required 3
Prepare direct materials budgets for March and April.
ORNAMENTAL SCULPTURES MFG.
Direct Materials Budget
For the Months of March and April
March
April
Budgeted production (units)
Materials requirements per unit (Ibs.)
Materials needed for production (Ibs.)
Budgeted ending inventory (Ibs.)
Total materials requirements (Ibs.)
Budgeted beginning inventory (Ibs.)
Materials to be purchased (Ibs.)
Direct material cost per Ib.
Total budgeted direct materials
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