Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 20-16 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 7 pounds of direct

image text in transcribedimage text in transcribedimage text in transcribed

Exercise 20-16 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 7 pounds of direct materials at a cost of $3 per pound and 0.4 direct labor hours at a rate of $15 per hour. Variable manufacturing overhead is charged at a rate of $4 per direct labor hour. Fixed manufacturing overhead is $4,200 per month. The company's policy is to maintain direct materials inventory equal to 30% of the next month's materials requirement. At the end of February the company had 6,080 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget Units to be produced March 3,900 April 5,300 May 4,900 (1) Prepare direct materials budgets for March and April. (2) Prepare direct labor budgets for March and April (3) Prepare factory overhead budgets for March and April. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare direct materials budgets for March and April. April ORNAMENTAL SCULPTURES MFG. Direct Materials Budget For the Months of March and April March Budgeted production (units) Materials requirements per unit (lbs.) Materials needed for production (lbs.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Budgeted beginning inventory (lbs.) Materials to be purchased (lbs.) Direct material cost per lb. Total budgeted direct materials Required 1 Required 2 > Exercise 20-16 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 7 pounds of direct materials at a cost of $3 per pound and 0.4 direct labor hours at a rate of $15 per hour. Variable manufacturing overhead is charged at a rate of $4 per direct labor hour. Fixed manufacturing overhead is $4,200 per month. The company's policy is to maintain direct materials inventory equal to 30% of the next month's materials requirement. At the end of February the company had 6,080 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget Units to be produced March 3,900 April 5,300 May 4,900 (1) Prepare direct materials budgets for March and April. (2) Prepare direct labor budgets for March and April (3) Prepare factory overhead budgets for March and April Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare direct labor budgets for March and April. (Round "DL hours required per unit" answers to two decimal places.) April ORNAMENTAL SCULPTURES MFG. Direct Labor Budget For the Months of March and April March Budgeted production (units) DL hours required per unit Total direct labor hours needed Direct labor rate per hour Total budgeted direct labor $ 0 $ 0 Exercise 20-16 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 7 pounds of direct materials at a cost of $3 per pound and 0.4 direct labor hours at a rate of $15 per hour. Variable manufacturing overhead is charged at a rate of $4 per direct labor hour. Fixed manufacturing overhead is $4,200 per month. The company's policy is to maintain direct materials inventory equal to 30% of the next month's materials requirement. At the end of February the company had 6,080 pounds of direct materials in inventory. The company's production budget reports the following Production Budget Units to be produced March 3,900 April 5,300 May 4,900 (1) Prepare direct materials budgets for March and April. (2) Prepare direct labor budgets for March and April. (3) Prepare factory overhead budgets for March and April. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare factory overhead budgets for March and April. April ORNAMENTAL SCULPTURES MFG. Factory Overhead Budget For the Months of March and April March Total direct labor hours needed VOH rate per DL hour Budgeted variable overhead $ 0 Budgeted fixed overhead Total budgeted factory overhead $ 0 % 0 $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing An Assertions Approach

Authors: G. William Glezen, Donald H. Taylor

7th Edition

047113421X, 978-0471134213

More Books

Students also viewed these Accounting questions