Question
Marge Manufacturing has the following information available for the month: Budgeted production is 400,000 units and the firms selling price per unit is $25. Each
Marge Manufacturing has the following information available for the month: Budgeted production is 400,000 units and the firms selling price per unit is $25. Each unit produced is budgeted to require 2 ounces of material B at a cost of $2 per ounce and 0.25 direct labor hours at a cost of $30 per hour
Instead of just giving an answer, it would be great if you can explain how to do it/why
b. How many ounces of material B does the firm plan to purchase during the month?
c. What is the firms budgeted breakeven point (in units)?
d. What is budgeted total overhead?
3. Marge Manufacturing has the following information available for the month: Budgeted production is 400,000 units and the firm's selling price per unit is $25 Each unit produced is budgeted to require 2 ounces of material B at a cost of $2 per ounce and 0.25 direct labor hours at a cost of $30 per hour Beginning inventory for material B is 100,000 ounces and budgeted ending inventory for material B is 200,000 ounces Budgeted ending finished goods inventories are 40,000 units and beginning finished goods inventories are 30,000 units The budgeted variable overhead rate is $3.50 per unit produced and budgeted fixed overhead costs are $100,000. Fixed overhead costs consist entirely of depreciation Budgeted fixed SG&A is $500,000, including $175,000 of depreciation. There is no budgeted variable SG&A. a. What is budgeted revenue for the monthStep by Step Solution
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