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Please help with blanks. I can't get calculation right. Posted the rest of question to have it checked for accuracy. Thank you Exercise 20-15 Manufacturing:
Please help with blanks. I can't get calculation right. Posted the rest of question to have it checked for accuracy. Thank you
Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 MCO Leather Goods manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $4 per pound and 0.7 direct labor hours at a rate of $10 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $13,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's materials requirement. At the end of August the company had 4,280 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget Units to be produced September 4,900 October 6,900 November 5,900 (1) Prepare direct materials budgets for September and October. (2) Prepare direct labor budgets for September and October. (3) Prepare factory overhead budgets for September and October. Prepare direct materials budgets for September and October. MCO LEATHER GOODS Direct Materials Budget For the Months of September and October September October Budgeted production (units) 6,900 Materials requirements per unit (lbs.) Materials needed for production (lbs.) 14,700 20,700 Budgeted ending inventory (lbs.) Total materials requirements (lbs.) 14,700 20,700 Budgeted beginning inventory (lbs.) 4.280 Materials to be purchased (lbs.) 10,420 20,700 Direct material cost per lb. $ 40 $ 4 Total budgeted direct materials $ 41,680 $ 82,800 MCO LEATHER GOODS Direct Labor Budget For the Months of September and October September October Budgeted production (units) 4,900 6,900 DL hours required per unit 0.7 0.7 Total direct labor hours needed 3,430 4,830 Direct labor rate per hour $ 10 $ 10 Total budgeted direct labor $ 34,300 $ 48,300 Prepare factory overhead budgets for September and MCO LEATHER GOODS Factory Overhead Budget For the Months of September and October September October Total direct labor hours needed 3,430 4,830 VOH rate per DL hour $ 31 $ 3 Budgeted variable overhead 10,290 14,490 Budgeted fixed overhead $ 13,000 $ 13,000 Total budgeted factory overhead $ 23,290 $ 27,490Step by Step Solution
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