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Giantage Corporation produces windows used in residential construction. The company expects to produce 44,550 units next year. With regards to direct materials, each unit of

  1. Giantage Corporation produces windows used in residential construction. The company expects to produce 44,550 units next year. With regards to direct materials, each unit of product requires 12 square feet of glass at a cost of $1.50 per square foot. With regards to direct labor, each unit of product requires 2 labor hours at a cost of $15/hour. The following information relates to the manufacturing overhead budget.
Variable Overhead Costs
Indirect materials $2.50 per unit
Indirect labor $3.20 per unit
Other $1.70 per unit
Fixed Overhead Costs
Salaries $50,000
Rent $60,000
Depreciation $36,000

  1. Calculate the direct materials budget for Giantage.
  1. Giantage Corporation
  1. Direct Material Budget
  1. Year Ending December 31
  1. Units to be produced
  1. Materials required per Square foot
  1. Material needed in production
  1. Add desired ending inventory
  1. Material needed in inventory
  1. Deduct beginning inventory
  1. Direct materials to be purchased (pounds)
  1. Cost of materials per pound
  1. Cost of materials to be purchased
  1. Direct material cost per unit

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