PART "B": BUDGETED INCOME STATEMENT Oak Creek Company is preparing its budgeted income statement for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are found in Part "A" above. In addition, Oak Creek budgets 0.3 hours of direct labour per unit, labour costs at $14 per hour, and manufacturing overhead at $20 per direct labour hour. Its budgeted selling and administrative expenses for 2020 are $7 million. Instructions a. Calculate the budgeted total unit cost. [2 marks] b. Prepare the budgeted income statement for 2020. [3 marks]
PART "B": BUDGETED INCOME STATEMENT Oak Creek Company is preparing its budgeted income statement for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are found in Part "A" above. In addition, Oak Creek budgets 0.3 hours of direct labour per unit, labour costs at $14 per hour, and manufacturing overhead at $20 per direct labour hour. Its budgeted selling and administrative expenses for 2020 are $7 million. Instructions a. Calculate the budgeted total unit cost. [2 marks] b. Prepare the budgeted income statement for 2020. [3 marks]
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![PART "B": BUDGETED INCOME STATEMENT
Oak Creek Company is preparing its budgeted income statement for 2020. Relevant data pertaining to its sales, production, and
direct materials budgets are found in Part "A" above.
In addition, Oak Creek budgets 0.3 hours of direct labour per unit, labour costs at $14 per hour, and manufacturing overhead at $20
per direct labour hour. Its budgeted selling and administrative expenses for 2020 are $7 million.
Instructions
a. Calculate the budgeted total unit cost. [2 marks]
b. Prepare the budgeted income statement for 2020. [3 marks]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff10e3bff-9ace-476b-bc49-3757051e1d82%2F91e50eb2-3b1d-4fb6-a664-3f03df55c66f%2F3pifj0c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PART "B": BUDGETED INCOME STATEMENT
Oak Creek Company is preparing its budgeted income statement for 2020. Relevant data pertaining to its sales, production, and
direct materials budgets are found in Part "A" above.
In addition, Oak Creek budgets 0.3 hours of direct labour per unit, labour costs at $14 per hour, and manufacturing overhead at $20
per direct labour hour. Its budgeted selling and administrative expenses for 2020 are $7 million.
Instructions
a. Calculate the budgeted total unit cost. [2 marks]
b. Prepare the budgeted income statement for 2020. [3 marks]
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