Question
I need a help with this assignment The sales manager has provided the following sales forecast for Q1 of 2022: Jan. Feb. March April 150
The sales manager has provided the following sales forecast for Q1 of 2022:
Jan. | Feb. | March | April |
150 | 100 | 150 | 200 |
The company has a policy of maintaining 10% of the next months production as its monthly ending inventory. It had 50 units in stock on January 1st2022.
Its material costs are $25 per unit.
It takes each of its 5 employees 2 hours to make each component.
The companys direct overhead (variable) is $3 per labour hour per month. Its fixed overhead is $10,000 per month.
It sells each unit/product to its customers for $115.
Create a monthly production schedule (January, February and March) budget showing the total monthly production needs and calculate the Direct Materials, Direct Labor Costs and Direct Variable Overhead Costs and Direct Fixed Overhead Costs. Also indicate the totals for each item for the quarter.Finally calculate the monthly profit it earns each month. ( (Revenues Expenses = Profit)
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