Hi, could someone please give me explanation and guide me steps to do these questions? Thank you very much!
A sales budget is given below for one of the products manufactured by the DMS Co. Selling price per unit is $12. Its sales budget for four months in 2019 is: Sales Budget (Units) January 20,000 February 35.000 March 60,000 April 40,000 The inventory of finished goods at the end of each month must equal 20% of the next month's sales. On 1 January, the finished goods inventory totaled 4,000 units. DMS Co. is also working on its direct labour budget. Each unit of output requires 2 direct labour hours. The direct labour rate is $6.00 per direct labour-hour. Production overhead costs are estimated below. The fixed costs are estimated monthly, whereas the variable costs are tied to direct labour hours as a cost driver. Fixed cost per month Variable cost per direct labour hour Supervisor salary $2000 Depreciation $200 Utilities and supplies $0.1 per direct labour hour Required: (a) Prepare a sales budget in dollar value for January, February and March 2019. (b) Prepare a production budget for January, February and March 2019. (c) Prepare a Direct Labour budget in hours and in dollar value for January, February, March 2019.Data concerning Tah Corporation's overhead cost appear below: Activity Cost Pools Total Cost Total Activity Assembling products $48,200 4,820 assembly hours Designing products $864,376 8,392 product design hours Setting up batches $5,400 120 batch set-ups Last year, Job #J34U involved 395 assembly hours, 48 product design hours and 22 batch set-ups. Required: (Round up all the answers to the nearest 2 decimal places) (a) Compute the activity rates for each of the three overhead activities. (b) How much overhead cost would be assigned to Job #J34U using the company's activity-based costing system? (c) Calculate the overhead cost for Job #J34U if the company is using a plant-wide rate based on assembly hours