Question
Each shade requires a total of $50.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shade expects to have 130 in
Each shade requires a total of $50.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shade expects to have 130 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 110 poles in inventory on June 30.
Suppose that each shade takes three direct labor hour to produce and Shade pays its workers $14 per hour. Additionally, Shade's fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $14 per unit produced.
Use the information and solutions presented to complete the requirements.
Required:
- Determine Shade's budgeted manufacturing cost per shade. (Note: Assume that fixed overhead per unit is $18.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started