Pierr Manufacturing Inc. has provided the following information concerning its manufacturing costs:

For example, utilities should be $1,600 per month plus $0.15 per machine-hour. The company expects to work 4,000 machine-hours in July. Note that the company€™s direct labor is a fixed cost.

Required:
Prepare the company€™s planning budget for manufacturing costs forJuly.

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Fixed Cost per Month Cost per Machine-Hour Direct materials Direct labor Supplies Utilities Depreciation Insurance $5.70 S42 800 S0.20 $1,600 $14,900 $11,400 S0.15