Wyckam Manufacturing Inc. has provided the following estimates concerning its manufacturing costs:Cost perMachine-HourFixed Costper MonthDirect materials$ 5.50$ 42,600Direct laborSuppliesUtilities$0.10$ 1,200$ 14,900$ 11,800$0.25DepreciationInsuranceFor example, utilițies should be $1,200 per month plus $0.25 per machine-hour. The company expects to work 4,500 machine-hours in June. Note that the company's direct labor is a fixed cost.cesRequired:Prepare the company's planning budget for June.Wyckam Manufacturing Inc.Planning Budget for Manufacturing CostsFor the Month Ended June 30< Prev6 of 10.........Next >o search行 Required:Prepare the company's planning budget for June.Planning Budget for Manufacturing CostsFor the Month Ended June 30Direct materialsDirect laborSuppliesesUtilitiesDepreciationInsuranceTotal manufacturing cost< Prev6 of 10Next >...ch近

Name: Wyckam Manufacturing Inc. has provided the following estimates concer
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Description: Wyckam Manufacturing Inc. has provided the following estimates concerning its manufacturing costs:Cost perMachine-HourFixed Costper MonthDirect materials$ 5.50$ 42,600Direct laborSuppliesUtilities$0.10$ 1,200$ 14,900$ 11,800$0.25DepreciationInsuranc

The budget is prepared by the management based on experience. Based on the budget, It is helpful for…

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Wyckam Manufacturing Inc. has provided the following estimates concerning its manufacturing costs: Fixed Cost Cost per Machine-Hour per Month $ 5.50 Direct materials Direct labor $ 42,600 $ 8.10 Supplies Utilities $ 1,200 $ 14,900 $ 11,800 $0.25 Depreciation Insurance For example, utilities should be $1,200 per month plus $0.25 per machine-hour. The company expects to work 4,500 machine- hours in June. Note that the company's direct labor is a fixed cost. Required: Prepare the company's planning budget for June.

Wyckam Manufacturing Inc. has provided the following estimates concerning its manufacturing costs: Fixed Cost Cost per Machine-Hour per Month $ 5.50 Direct materials Direct labor $ 42,600 $ 8.10 Supplies Utilities $ 1,200 $ 14,900 $ 11,800 $0.25 Depreciation Insurance For example, utilities should be $1,200 per month plus $0.25 per machine-hour. The company expects to work 4,500 machine- hours in June. Note that the company's direct labor is a fixed cost. Required: Prepare the company's planning budget for June.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Wyckam Manufacturing Inc. has provided the following estimates concerning its manufacturing costs:
Cost per
Machine-Hour
Fixed Cost
per Month
Direct materials
$ 5.50
$ 42,600
Direct labor
Supplies
Utilities
$0.10
$ 1,200
$ 14,900
$ 11,800
$0.25
Depreciation
Insurance
For example, utilițies should be $1,200 per month plus $0.25 per machine-hour. The company expects to work 4,500 machine-
hours in June. Note that the company's direct labor is a fixed cost.
ces
Required:
Prepare the company's planning budget for June.
Wyckam Manufacturing Inc.
Planning Budget for Manufacturing Costs
For the Month Ended June 30
< Prev
6 of 10
...
...
...
Next >
o search
行

Required:
Prepare the company's planning budget for June.
Planning Budget for Manufacturing Costs
For the Month Ended June 30
Direct materials
Direct labor
Supplies
es
Utilities
Depreciation
Insurance
Total manufacturing cost
< Prev
6 of 10
Next >
...
ch
近

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