QUESTION TWO Adam Sandler is the financial controller for Plantation Fittings, a manufacturer of furniture. In...

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QUESTION TWO Adam Sandler is the financial controller for Plantation Fittings, a manufacturer of furniture. In June 2023 (end of the financial year), Sandler had prepared the following flexible budgets for direct labour and manufacturing overhead for the 2023/2024 financial year. Though the factory has a capacity of 150,000 direct labour hours per year, Sandler has estimated that the normal usage is 120,000 direct labour hours in a typical year. Manufacturing Overhead Direct-Labor Hours 100,000 120,000 140,000 Variable Fixed $325,000 $216,000 390,000 216,000 455,000 216,000 Sandler is now analysing overhead costs for the month of May, 2024. He has gathered the following information: Labour Direct-labour hours: Job 77 Job 78 Job 79 Labor costs: Direct-labour wages Indirect-labour wages (4,000 hours) Supervisory salaries Material Inventories, May 1: Raw materials and supplies Work in process (job 77) Finished goods Purchases of raw material and supplies: 3,500 3,000 2,000 $ 51,000 15,000 6,000 $ 10,500 54,000 112,500 QUESTION TWO Adam Sandler is the financial controller for Plantation Fittings, a manufacturer of furniture. In June 2023 (end of the financial year), Sandler had prepared the following flexible budgets for direct labour and manufacturing overhead for the 2023/2024 financial year. Though the factory has a capacity of 150,000 direct labour hours per year, Sandler has estimated that the normal usage is 120,000 direct labour hours in a typical year. Manufacturing Overhead Direct-Labor Hours 100,000 120,000 140,000 Variable Fixed $325,000 $216,000 390,000 216,000 455,000 216,000 Sandler is now analysing overhead costs for the month of May, 2024. He has gathered the following information: Labour Direct-labour hours: Job 77 Job 78 Job 79 Labor costs: Direct-labour wages Indirect-labour wages (4,000 hours) Supervisory salaries Material Inventories, May 1: Raw materials and supplies Work in process (job 77) Finished goods Purchases of raw material and supplies: 3,500 3,000 2,000 $ 51,000 15,000 6,000 $ 10,500 54,000 112,500