Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please provide the math to solve the math problems in the blank rectangles MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct

image text in transcribedimage text in transcribedimage text in transcribed

Please provide the math to solve the math problems in the blank rectangles

MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hours at a rate of $16 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $14.000 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 2,780 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget Units to be produced September 5,480 October 6,880 November 6,100 (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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare direct materials budgets for September and October. MCO Leather Direct Materials Budget For the Months of September and October September October Budgeted production (units) 5.400 6.800 Materials requirements per unit 3 3 (lbs) Materials needed for production 10.200 20,400 (lbs.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) 18.200 20.400 Budgeted beginning inventory 2.780 (lbs.) Materials to be purchased (lbs.) 13.420 20.400 Direct material cost per lb. IS 3 S 3 Total budgeted direct materials S 40.260 $ 61,200 Required 1 Required 2 Required 3 Prepare factory overhead budgets for September and October. MCO Leather Factory Overhead Budget For the Months of September and October September October Total direct labor hours needed VOH rate per DL hour s 3$ 3 Budgeted variable overhead 0 0 Budgeted foed overhead IS 14,000 $ 14,000 Total budgeted factory S 14,000 S 14,000 overhead Required 2 Required 3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Second Custom Edition For The University Of Central Florida

Authors: Walter T. Jr, Horngren Harrison

2nd Custom Edition

0536986002, 978-0536986009

More Books

Students also viewed these Accounting questions

Question

Diagnose the cause of confl ict in a dispute situation.

Answered: 1 week ago