Month April May June Quarter

Budget direct labour hours 453600 464400 583200 1501200

The full absorption cost of the opening finished goods inventory is$4,730 per unit

The variable manufacturingcost of the opening finished goods inventory is$1,930 per unit

Budgeted Manufacturing Overheads

Fixed Cost component per month Variable Cost component per DL hour

Indirect labour $0 $56.70

Power $0 $5.40

Maintenance ?? ??

Supervision $37,800,000 $0

Depreciation $3,375,000 $0

Rates & Utilities $2,789,100 $0

Other $13,500,000 $40.50

Question:

1. Use the information to make manufacturing overhead budget for the quarter ending June (Excel)
2. Do we need to use absorption cost to make manufacturing overhead budget?

Variable Selling Expenses Fixed Selling & Admin Expenses Cash on hand at opening Annual interest rate on borrowing Cash Sales Received in month of sale Received in month after sale Balance of accounts receivables at the start of the month Dividends paid in June land purchased in May $62,775,000 $50,220,000 $56,497,500 $24,300,000 $19,440,000 $21,870,000 $37,075,111} $69,660,011!) $78,367,500 $3,375,000 6% $0 80% 18% $82,863,000 $1,194,750 $185,100,000 Recent statistical data for Maintenance Costs Labour Hours Total Maintenance Costs 1,302,800 $79,920,111) 1,485,000 $86,805,000 1,363,500 $82,215,(](]() 1,242,\") $77,625,000