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Prego Sauce is in the process of preparing a production cost budget for May. The actual costs in April were: Prego Sauce Production Cost Budget
Prego Sauce is in the process of preparing a production cost budget for May. The actual costs in April were:
Prego Sauce | |
Production Cost Budget | |
April 2010 | |
Production - Jars of sauce | 20,000 |
Ingredient cost (variable) | $16,000 |
Labor cost (variable) | 9,000 |
Rent (fixed) | 4,000 |
Depreciation (fixed) | 6,000 |
Other (fixed) | 1,000 |
Total | $36,000 |
Using this information, prepare a budget for May stating the total amount for the May budget. Assume the budget will increase to 24,500 jars of sauce reflecting anticipated sales increase related to a new marketing campaign
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