Question
McComb Co. expects to sell 15,000 units at $235 each. Each unit is expected to require 3lbs. of material @ $20/lb. and 4 direct labor
McComb Co. expects to sell 15,000 units at $235 each. Each unit is expected to require 3lbs. of material @ $20/lb. and 4 direct labor hours @ $15/DLH. The overhead rate is estimated to be $10/DLH. The beginning inventories are: DM 2,000 lbs. and Finished Goods 1,000 units. The budgeted ending inventories are: DM 2,500 lbs. and Finished Goods 1,500 units.
- What is McComb Co's budgeted sales (in $)?
- What is McComb Co's budgeted production (in units)?
- Assuming a production of 10,500 units, what is the budgeted materials purchase (in lbs.& $)?
- Based on your answer to (2), what is the budgeted cost per unit?
- Based on your answer to (2), what is the budgeted cost of goods sold?
- Based on your answer to (2), what is the budgeted cost for DL & FOH respectively?
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Elementary Statistics A Step By Step Approach
Authors: Allan Bluman
11th Edition
1260360652, 978-1260360653
