Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $3 per pound and 0.4 direct labor hours at a rate of $15 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $4,000 per month. The companys policy is to maintain direct materials inventory equal to 30% of the next months materials requirement. At the end of March the company had 4,480 pounds of direct materials in inventory. The companys production budget reports the following.

Production Budget	March		April		May
Units to be produced	4,200		5,000		4,800

(1) Prepare direct materials budgets for March and April. (2) Prepare direct labor budgets for March and April. (3) Prepare factory overhead budgets for March and April.

1.

ORNAMENTAL SCULPTURES MFG.
Direct Materials Budget
For the Months of March and April
	March	April
Budgeted production (units)
Materials requirements per unit (lbs.)
Materials needed for production (lbs.)	0	0
Budgeted ending inventory (lbs.)
Total materials requirements (lbs.)	0	0
Budgeted beginning inventory (lbs.)
Materials to be purchased (lbs.)	0	0
Direct material cost per lb.
Total budgeted direct materials	$0	$0

2.

ORNAMENTAL SCULPTURES MFG.
Direct Labor Budget
For the Months of March and April
	March	April
Budgeted production (units)
DL hours required per unit
Total direct labor hours needed	0	0
Direct labor rate per hour
Total budgeted direct labor	$0	$0

3.

ORNAMENTAL SCULPTURES MFG.
Factory Overhead Budget
For the Months of March and April
	March	April
Total direct labor hours needed
VOH rate per DL hour
Budgeted variable overhead	$0	$0
Budgeted fixed overhead
Total budgeted factory overhead	$0	$0