Answered step by step
Verified Expert Solution
Question
1 Approved Answer
P-5-4. Decent Furniture Company produces two types of office chairs identified as A and B. Estimated requirements of common inputs are as under for the
P-5-4. Decent Furniture Company produces two types of office chairs identified as A and B. Estimated requirements of common inputs are as under for the month of June: Steel Pipes (ft) Wood board (sqft) Direct Labour (Hrs) Machine Hours A 12 4 8 6 B 20 6 12 8 Budgeted sale of product A is 800 units while for product B is 300 units. The opening and closing inventories are estimated as under: Closing Opening 80 120 200 Product A Product B Steel Pipes (ft) Wood (sqft) 60 90 140 80 60 Overhead cost is applied to production at the rate of Rs. 100 per machine hour. Direct labour rate is Rs. 150 per hour. The cost of steel pipe is Rs. 40 per foot and wood board is Rs. 50 per sq foot. Required: 1. Prepare production budget, purchases budget, direct labour and overhead cost budget for June. 2. Prepare budgeted manufacturing cost of each product and each unit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started