Ketton Ltd is in the process of preparing direct labour and factory overhead budgets for the year
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Ketton Ltd is in the process of preparing direct labour and factory overhead budgets for the year ending 30 June 2020. Relevant data are set out below.
Required
(a) Prepare the direct labour budget by quarter for the year ending 30 June 2020.
(b) Prepare the factory overhead budget by quarter for the year ended 30 June 2020.
Transcribed Image Text:
Production: 21000, 41 000, 41 500, 51 000 units per quarter Direct labour: Hourly rate is $18 per hour. Each unit requires 2.5 hours of labour. Factory overhead: Fixed overhead costs per quarter - Salaries, $71 500 Depreciation, $31000 Rent, $60000 Variable overhead - Indirect materials, $3.50 per direct labour hour Indirect labour, $2.60 per direct labour hour Other, 30c per direct labour hour
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a Direct Labour Budget To prepare the direct labour budget we need to calculate the number of direct labour hours required for each quarter and the co...View the full answer
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Related Book For
Accounting
ISBN: 9780730363224
10th Edition
Authors: John Hoggett, John Medlin, Keryn Chalmers, Beattie Claire, Hellmann Andreas, Maxfield Jodie
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