=+10-28 KKK Budget schedules for a manufacturer OBJECTIVE 3 Sierra Furniture is an elite desk manufacturer. It makes two products:

◗ Executive desks—small silky oak desks

◗ Chairman desks—medium Tasmanian oak desks.

The budgeted direct cost inputs for each product in 2014 are:

Executive line Chairman line Silky oak top 2 square metres 0 Tasmanian oak top 0 5 square metres Silky oak legs 4 0 Tasmanian oak legs 0 4 Direct manufacturing labour 3 hours 5 hours Unit data pertaining to the direct materials for March 2014 are:

Actual beginning direct materials inventory (1/3/2014)

Executive line Chairman line Silky oak top (square metres) 40 0 Tasmanian oak top (square metres) 0 30 Silky oak legs 100 0 Tasmanian oak legs 0 40 Target ending direct materials inventory (31/3/2014)

Executive line Chairman line Silky oak top (square metres) 24 0 Tasmanian oak top (square metres) 0 40 Silky oak legs 80 0 Tasmanian oak legs 0 44 406 Chapter 10: Master budget and responsibility accounting M10_HORN3377_02_LT_C10.indd 406 2/09/13 3:46 PM Unit cost data for direct cost inputs pertaining to February 2014 and March 2014 are:

February (actual) March (budgeted)

Silky oak top (per square metre) $144 $160 Tasmanian oak top (per square metre) 115 125 Silky oak legs (per leg) 11 12 Tasmanian oak legs (per leg) 17 18 Manufacturing labour cost per hour 30 30