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Ponderosa Company makes harnesses and plans the following activity for 2023: January February March April May Units to be sold Units to be Produced 10,000
Ponderosa Company makes harnesses and plans the following activity for 2023: January February March April May Units to be sold Units to be Produced 10,000 units 11,000 units 10,500 units 12,000 units 13,000 units 14,000 units 16,200 units 15,000 units 14,400 units 13,000 units Ending Inventory of FG 2,100 units 3,600 units 4,600 units 3,400 units 2,000 units Material in each product is: Part K#34 2 feet at $4.00 per foot for January through March and $4.20 per foot for April through December Part C#20 3 parts at $7.00 per part Desired Ending Inventory of each type of Material is 30% of the amount to be used in the following month. Direct labor is expected to be 1.5 hours and workers will be paid $24.00 per hour. For the year, Ponderosa expects to work 200,000 hours of direct labor. Factory Overhead is expected to be: Indirect Material $1.20 per hour of direct labor Power $0.50 per hour of direct labor Supervision $144,000 for the year Depreciation $480,000 for the year Property Taxes $36,000 for the year Other $60,000 for the year Prepare the following budgets for Ponderosa: 1. The materials USAGE budget for April 2. The direct labor budget for April 3. The factory overhead budget 4. Determine the rate per hour of direct labor (not per machine hour or percentage of labor cost) to be used to allocate factory overhead for next year. 5. The finished goods budget for March 31 and for April 30
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