Wyckam Manufacturing Incorporated has provided the following estimates concerning its manufacturing costs: Fixed Cost Cost per per Month Machine-Hour $ 5.60 $ 42,500 $ 1,300 $ 15,500 $ 11,800 Direct materials Direct labor Supplies Utilities Depreciation Insurance $ 0.10 $ 0.25 For example, utilities should be $1,300 per month plus $0.25 per machine-hour. The company expects to work 4,100 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 Incorporated has provided the following estimates concerning its manufacturing costs: Fixed Cost Cost per per Month Machine-Hour $ 5.60 $ 42,500 $ 1,300 $ 15,500 $ 11,800 Direct materials Direct labor Supplies Utilities Depreciation Insurance $ 0.10 $ 0.25 For example, utilities should be $1,300 per month plus $0.25 per machine-hour. The company expects to work 4,100 machine-hours in June. Note that the company's direct labor is a fixed cost. Required: Prepare the company's planning budget for June.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Wyckam Manufacturing Incorporated has provided the following estimates concerning its manufacturing costs:
Fixed Cost Cost per
per Month Machine-Hour
$5.60
$ 42,500
$ 1,300
$ 15,500
$ 11,800
Direct materials
Direct labor
Supplies
Utilities
Depreciation
Insurance
For example, utilities should be $1,300 per month plus $0.25 per machine-hour. The company expects to work 4,100 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 Incorporated
Planning Budget for Manufacturing Costs
For the Month Ended June 30
Direct materials
Direct labor
Supplies
Utilities
$0.10
$ 0.25
Depreciation
Insurance
Total manufacturing cost
$
0
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