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Mama Italiano Sauce is in the process of preparing a production cost budget for May. The actual costs in April were: Mama Italian Sauce Production

Mama Italiano Sauce is in the process of preparing a production cost budget for May. The actual costs in April were:

Mama Italian Sauce

Production Cost Budget

April 2008

Production - Jars of sauce …………………20,000

Ingredient cost (variable) ……………….. $16,000

Labor cost (variable) ………………………..9,000

Rent (fixed) ………………………………...4,000

Depreciation (fixed) ………………………..6,000

Other (fixed) ……………………………….1,000

Total……………………………………...$36,000

Using this information, prepare a budget for May stating the total amount for the May budget. Assume the budget will increase to 23,500 jars of sauce reflecting anticipated sales increase related to a new marketing campaign.

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