-S Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $4 per pound and 0.4 direct labor hour at a rate of $19 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $3,500 per month. The company's policy is to maintain direct materials inventory equal to 30% of the next month's direct materials requirement. At the end of February the company had 7,680 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget Units to produce March April May 3,200 4,500 4,700 (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 Required Required 1 2 3 Prepare factory overhead budgets for March and April. GARDEN YETI Factory Overhead Budget Direct labor hours needed Budgeted variable overhead Budgeted total factory overhead March < Required 2 April Required 3 >
-S Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $4 per pound and 0.4 direct labor hour at a rate of $19 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $3,500 per month. The company's policy is to maintain direct materials inventory equal to 30% of the next month's direct materials requirement. At the end of February the company had 7,680 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget Units to produce March April May 3,200 4,500 4,700 (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 Required Required 1 2 3 Prepare factory overhead budgets for March and April. GARDEN YETI Factory Overhead Budget Direct labor hours needed Budgeted variable overhead Budgeted total factory overhead March < Required 2 April Required 3 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:-S
Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $4 per
pound and 0.4 direct labor hour at a rate of $19 per hour. Variable overhead is budgeted at a rate of $2 per direct labor
hour. Budgeted fixed overhead is $3,500 per month. The company's policy is to maintain direct materials inventory
equal to 30% of the next month's direct materials requirement. At the end of February the company had 7,680 pounds
of direct materials in inventory. The company's production budget reports the following.
Production
Budget
Units to
produce
March April May
3,200 4,500 4,700
(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 Required Required
1
2
3
Prepare factory overhead budgets for March and April.
GARDEN YETI
Factory Overhead Budget
Direct labor hours needed
Budgeted variable overhead
Budgeted total factory overhead
March
< Required 2
April
Required 3 >
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