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Carro Corporation only sells one product and has the following data concerning it's first month of operations (Carro has sold nothing in previous months)
Carro Corporation only sells one product and has the following data concerning it's first month of operations (Carro has sold nothing in previous months) Budgetted production Direct labour required per unit Direct material required per unit 8,800 units 0.5 hours 2 meters Variable costs per unit: Direct materials Direct labour Fixed costs: $4 per meter $15 per hour Fixed manufacturing overhead $ 12,000 The company pays all material and labour costs in the month they occur. The company pays 30% of fixed manufacturing overhead in the month it occurs and 70% one month following. Complete the cashflow budget for Carro's production facility: Static Production Units Budgeted Production Cost Outflows Month 1 $ 8,800
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