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Prepare budgets for Allison Manufacturing based on the information below: Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly
Prepare budgets for Allison Manufacturing based on the information below: Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities.
Projected sales in units for the coming months follow:
January
February
March
April
May
The following data pertain to production policies and manufacturing
specifications followed by Allison Manufacturing:
A: The direct labor used per unit of output is hours. The average direct labor cost per hour is $
B: Overhead each month is estimated using a flexible budget formula. Note: Activity is measured in direct labor hours.
Prepare a monthly operating budget for the first quarter with the following schedules. Note: Assume that there is no change in workinprocess inventories.
A Direct materials purchases budget
d Direct labor budget
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