Question
Fixed Cost per MonthCost per Machine-HourDirect materials$5.40Direct labor$42,500Supplies$0.30Utilities$1,000$0.25Depreciation$14,500Insurance$11,700 For example, utilities should be $1,000 per month plus $0.25 per machine-hour. The company expects to work
Fixed Cost
per MonthCost per
Machine-HourDirect materials$5.40Direct labor$42,500Supplies$0.30Utilities$1,000$0.25Depreciation$14,500Insurance$11,700
For example, utilities should be $1,000 per month plus $0.25 per machine-hour. The company expects to work 4,200 machine-hours in June. Note that the company's direct labor is a fixed cost.
Required:
Prepare the company's planning budget for June.
Actual machine-hours
Direct materials
Direct labor
Supplies
Utilities
Depreciation
Insurance
Total manufacturing cost
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Understanding Financial Accounting
Authors: Christopher D. Burnley
2nd Canadian Edition
1119406927, 978-1119406921
