Orioles Salsa is in the process of preparing a production cost budget for May. Actual costs in April were:

Orioles Salsa Production Costs April 2020
Production		25,000 Jars of Salsa
Ingredient cost (variable)		$22,500
Labor cost (variable)		12,000
Rent (fixed)		5,000
Depreciation (fixed)		6,000
Other (fixed)		1,000
Total		$46,500

(a)

• Your Answer
• Correct Answer

Correct answer iconYour answer is correct.

Using this information, prepare a budget for May. Assume that production will increase to 30,000 jars of salsa, reflecting an anticipated sales increase related to a new marketing campaign.

Oriole's Salsa Budgeted Production Costs May 2020
Production		30,000 Jars of Salsa
Ingredient cost		$enter a dollar amount
Labor cost		enter a dollar amount
Rent		enter a dollar amount
Depreciation		enter a dollar amount
Other		enter a dollar amount
Total		$enter a total dollar amount

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Solution

Attempts: 1 of 1 used

(b1)

• Your Answer
• Correct Answer

Correct answer iconYour answer is correct.

Does the budget suggest that additional workers are needed? select an option YesNo

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Attempts: 1 of 1 used

(b2)

• Your Answer
• Correct Answer (Used)

Suppose the wage rate is $15 per hour. How many additional labor hours are needed in May?

Additional labour hours

enter the additional labour hours

(c1)

Calculate the actual cost per unit in April and the budgeted cost per unit in May. (Round answers to 2 decimal places, e.g. 15.20.)

		Cost per unit
Actual cost per unit in April		$enter actual cost per unit in dollar for april
Budgeted cost per unit in May		$enter budgeted cost per unit in dollar for may