Mini-Case prepare direct labor and factory overhead budgets and analyze strategies

Budget Production:

April - 880 units

May - 1100 units

June - 1075 units

July - 1125

Sale Forecast:

April - 805 units

May - 900 units

June - 1025 units

July - 875 units

Ending Inventory:

March - 1048 pounds

April - ?

June - ?

July - ?

Direct Labor Rate - $18 per hour

Direct material cost - $3 per pound

Variable Overhead Rate - $25 per DL hour

Tableau DA 7-3 (Static): Mini-Case, Prepare direct labor and factory overhead budgets and analyze strategies LOP1 Delray Manufacturing needs to better budget and analyze costs. While Deiray has experienced high sales growth, it has struggled to effectively manage costs and inventories. Delray aims to end each month with direct materials inventory equal to 40% of next month's production needs. Each finished unit requires 4 pounds of direct materials and 2 hours of direct labor Delray budgets $12,000 of fixed overhead costs per month. A Tableau Dashboard is provided to aid our analysis. Ending Direct Materials Inventory by Month Ending Direct Materials Inventorv bv Month 1. Prepare a direct labor budget for each month of Aprit, May and June 2. Prepare a factory overhead budget for each month of April, May, and June 3. The company is considering hiring more skilled workers. These workers would increase the direct labor rate to $21 per hour and reduce direct labor hours required per finisthed good to 15 hours. Compute the direct labor budget for April assuming the company (a) does not hire more skilled workers and (b) hires more skilled workers 4. The company is considering hiring more skilled workers. These workers would increase the direct labor rate to $21 per hout and 1. Prepare a direct labor budget for each month of April, May, and June. 2. Prepare a factory overhead budget for each month of April, May, and June. 3. The company is considering hiring more skilled workers. These workers would increase the direct labor rate to $21 per hour and reduce direct labor hours required per finished good to 1.5 hours. Compute the direct labor budget for April assuming the company (a) does not hire more skilled workers and (b) hires more skilled workers 4. The company is considering hiring more skilled workers. These workers would increase the direct labor rate to $21 per hour and reduce direct labor hours required per finished good to 1.5 hours. How would this change to more skilled workers impact total budgeted factory overhead (assuming the budgeted variable overhead rate is unchanged)? Complete this question by entering your answers in the tabs below. Prepare a direct labor budget for each month of April, May, and June. (Enter your direct labor hours (hrs.) per unit in two decimal places.) 1. Prepare a direct labor budget for each month of April, May, and June. 2. Prepare a factory overhead budget for each month of Apri, May, and June 3. The company is considering hiring more skilled workers. These workers would increase the direct labor tate to $21 per hour and reduce direct labor hours required per finished good to 1.5 hours. Compute the direct labor budget for April assuming the company (a) does not hire more skilled workers and (b) hires more skilled workers. 4. The company is considering hiring more skilled workers. These workers would increase the direct labor rate to $21 per hour and reduce direct labor hours required per finished good to 1.5 hours. How would this change to more skilled workers impact total budgeted factory overhead (assuming the budgeted variable overhead rate is unchanged)? Complete this question by entering your answers in the tabs below. Prepare a factory overhead budget for each month of April, May, and June. 1. Prepare a direct labor budget for each month of Aprii, May, and June. 2. Prepare a factory overhead budget for each month of April, May, and June. 3. The company is considering hiring more skilled workers. These workers would increase the direct labor rate to $21 per hour and reduce direct labor hours required per finished good to 1.5 hours, Compute the direct labor budget for April assuming the company does not hire more skilled workers and (b) hires more skilled workers. 4. The company is considering hiring more skilled workers. These workers would increase the direct iabor rate to $21 per hour and reduce direct labor hours required per finished good to 1.5 hours. How would this change to more skilled workers impact total budgeted factory overhead (assuming the budgeted variable overhead rate is unchanged)? Complete this question by entering your answers in the tabs below. The company is considering hiring more skilled workers. These workers would increase the direct labor rate to \$21 per hour and reduch direct labor hours required per finished good to 1.5 hours. Compute the direct labor budget for April assuming the company (a) does not hire more skilled workers and (b) hires more skilled workers. 1. Prepare a direct labor budget for each month of April, May, and June 2. Prepare a factory overhead budget for each month of April, May, and June: 3. The company is considering hiring more skilled workers. These workers would increase the direct labor rate to $21 per hour and reduce direct labor hours required per finished good to 1.5 hours. Compute the direct labor budget for April assuming the company (o does not hire more skilled workers and (b) hires more skilled workers 4. The company is considering hiring more skilled workers. These workers would increase the direct labor rate to $21 per hour and reduce direct labor hours required per finished good to 1.5 hours. How would this change to more skilled workers impact total budgeted factory overhead (assuming the budgeted variable overhead rate is unchanged)? Complete this question by entering your answers in the tabs below. The company is considering hiring more skilled workers, These workers would increase the direct labor rate to $21 per hour and reduce direct labor hours required per finished good to 1.5 hours. How would this change to more slilled workers impact total budgeted factory overhead (assuming the budgeted variable overhead rate is unchanged)