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Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $2 per pound and 0.4 direct labor hour
Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $2 per pound and 0.4 direct labor hour at a rate of $19 per hour. Variable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $4,800 per month. The company's policy is to maintain direct materials inventory equal to 40% of the next month's direct materials requirement. At the end of February the company had 10,240 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget Units to produce March April 3,200 4,500 May 4,700 (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. GARDEN YETI Direct Materials Budget March April Units to produce 3,200 4,500 Materials required per unit (pounds) 8 8 Materials needed for production (pounds) 25,600 36,000 Add: Desired ending materials inventory 11,280 Total materials required (pounds) 36,880 36,000 Materials to purchase (pounds) 36,880 36,000
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