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NEED NUMBER ONE AND FOUR. NEED NUMBER ONE AND FOUR PLEASE !!!!!!!! Murphy Inc. manufactures a single product, DLZ. Murphy uses budgets and standards in
NEED NUMBER ONE AND FOUR.
NEED NUMBER ONE AND FOUR PLEASE !!!!!!!!
Murphy Inc. manufactures a single product, DLZ. Murphy uses budgets and standards in its planning and control functions. Murphy makes use of its standards in order to derive their budgeted cost per unit. For example, Exhibit A provides information on the budgeted variable costs per unit. When determining direct material costs for the planning budget income statement, the $10 budgeted material cost per unit of DLZ would be used in the calculation Exhibit A Budgeted (Standard) Variable Costs Per Unit of DLZ und Raw material: 2 pounds at $5 per po Direct labor: 0.5 direct labor hour at $12 per hour Variable overhead: 0.5 direct labor hour at $8 per hour 4 $20 Total variable budgeted (standard) cost per DLZ The standards for fixed manufacturing overhead costs are: 0.5 direct labor hour at $30 per hour. The standard fixed manufacturing overhead cost per hour is calculated based on a denominator level of activity of 50,000 direct labor hours The planning budget income statement is based on the expectation of selling 100,000 units of DLZ. The budgeted sales price is $60 per unit, and total budgeted fixed selling and administrative costs are $1,800,000. There are no variable selling and administrative costs in this firm The company actually produced and sold 120,000 units this year. The company never has a beginning or ending raw materials inventory, because it uses all raw materials purchased. Also, the company never has a beginning or ending finished goods inventory. Everything produced in the year is sold in that same yearStep by Step Solution
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