Ramos Company provides the following (partial) production budget for the next three months. Each finished unit requires 0.3 hour of direct labor at the rate of $11 per hour. The company budgets variable overhead at the rate of $15 per direct labor hour and budgets fixed overhead of $9,200 per month. Production Budget Units to produce April 560 May 690 June 660 1. Prepare a direct labor budget for April, May, and June. 2. Prepare a factory overhead budget for April, May, and June.

Ramos Company provides the following (partial) production budget for the next three months. Each finished unit requires 0.3 hour of direct labor at the rate of $11 per hour. The company budgets variable overhead at the rate of $15 per direct labor hour and budgets fixed overhead of $9,200 per month. Production Budget Units to produce April 560 May 690 June 660 1. Prepare a direct labor budget for April, May, and June. 2. Prepare a factory overhead budget for April, May, and June.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Tora Company plans to produce 1,020 units in July. Each unit requires two hours of direct labor. The direct labor rate is $20 per hour. Prepare a direct labor budget for July. Units to produce TORA COMPANY Direct Labor Budget Direct labor hours needed Cost of direct labor July 1,020
d. Prepare the direct labor budget for the quarter ended March 31, 20X1. e. Prepare the manufacturing overhead budget for the quarter ended March 31, 20X1. f . Prepare the selling and administrative expense budget for the quarter ended March 31, 20X1.
Ramos Company provides the following (partial) production budget for the next three months. Each finished unit requires 0.6 hour of direct labor at the rate of $21 per hour. The company budgets variable overhead at the rate of $25 per direct labor hour and budgets fixed overhead of $8,500 per month. Production Budget April May June Units to produce 490 620 590 1. Prepare a direct labor budget for April, May, and June.2. Prepare a factory overhead budget for April, May, and June.
Yordi Company expects to produce 1,710 units in January and 1,836 units in February. Yordi budgets three direct labor hours per unit. Direct labor costs average $18 per hour. Prepare Yordi's direct labor budget for January and February. Begin by preparing the direct labor budget for January and February through the total direct labor hours needed for production line and then complete the budget by calculating the budgeted direct labor cost. Yordi Company Direct Labor Budget Two Months Ended January 31 and February 28 January February Direct labor hours needed for production
The production supervisor of the Machining Department for Celtic Company agreed to the following monthly static budget for the upcoming year: Celtic Company Machining Department Monthly Production Budget Wages $290,000 Utilities 14,000 Depreciation 23,000 Total $327,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Amount Units Spent Produced January $308,000 70,000 February 290,000 63,000 March 277,000 57,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for January-March have been less than the monthly static budget of $327,000. However, the plant manager believes that the budget should not remain fixed for every month but should "flex" or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: Wages per hour $19.00 Utility cost per direct labor hour…
Echo Amplifiers prepared the following sales budget for the first quarter of 2018: Jan. Feb. Mar. Units 900 1,300 1,400 Sales price $100 $100 $100 Budgeted sales $90,000 $130,000 $140,000 It also has this additional information related to its expenses: Direct material per unit $1.50 Direct labor per unit 2 Variable manufacturing overhead per hour 0.40 Fixed manufacturing overhead per month 3,000 Sales commissions per unit 16 Sales salaries per month 5,100 Delivery expense per unit 0.50 Factory utilities per month 4,000 Administrative salaries per month 20,000 Marketing expenses per month 7,000 Insurance expense per month 12,000 Depreciation expense per month 10,000 Prepare a sales and administrative expense budget for each month in the quarter ending March 31, 2018. Enter all amounts as positive numbers.
Owe
Tora Company plans to produce 1,020 units in July. Each unit requires three hours of direct labor. The direct labor rate is $11 per hou. Prepare a direct labor budget for July TORA CO. Direct Labor Budget July Units to produce 1.020 units Direct labor hours needed Cost of direct labor
Addison Company budgets production of 2,760 units during the second quarter. Information on its direct labor and its variable and fixed overhead is as follows: Direct labor Variable overhead Fixed overhead 1. Prepare a direct labor budget. 2. Prepare a factory overhead budget. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Each finished unit requires 5 direct labor hours, at a cost of $8 per hour. Budgeted at the rate of $10 per direct labor hour. Budgeted at $550,000 per quarter. Prepare a direct labor budget. Units to produce Direct labor hours needed Cost of direct labor ADDISON COMPANY Direct Labor Budget Second Quarter 2,760 units
Hockey Pro budgets production of 3,500 hockey pucks during May. The company assigns variable overhead at the rate of $2.00 per unit. Fixed overhead equals $49,000 per month.Prepare a factory overhead budget for May.
Tucker Inc. makes dog treats. The material to be purchased from the production budget is as follows: April May JuneMaterial to be purchased 161,800 270,900 195,600 Tucker Inc. pays $0.40 per kilo for its material. 60% of a months purchases are paid for in th month of purchase, 40% is paid for in the following month. The March 31 accounts payable balance is $10,000 and will be paid in full in the first month. The total cash disbursement for April is ____________ The total cash disbursement for May is ____________ The total cash disbursement for June is ____________ The total cash disbursement for the quarter is____________
A company budgets production of 4,720 units in May and 6,025 units in June. Each unit requires 4 pounds of direct materials. Direct materials cost $5 per pound. The company maintains direct materials inventory equal to 40% of next month's direct materials requirement. The company has 7,552 pounds of direct materials inventory on April 30. Prepare the direct materials budget for May. Units to produce Direct Materials Budget Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases May