Prepare the direct labor budget and the overhead budget

Ramos Co. provides the following sales forecast and production budget for the next four months: April May June July 600 540 580 570 Sales (units) 500 442 530 544 The company plans for finished goods inventory of 120 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 663 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.50 hours of direct labor at the rate of $16 per hour. The company budgets variable overhead at the rate of $20 per direct labor hour and budgets fixed overhead of $8,000 per month. Prepare a direct labor budget. (Enter your direct labor hours (hrs.) per unit in two decimal places.) RAMOS CO. Direct Labor Budget For April, May, and June April Budgeted production (units) 442 570 544 units Total labor hours needed Budgeted direct labor cost Required Required 2 Prepare a factory overhead budget for April, May, and June. RAMOS CO. Factory Overhead Budget For April, May, and June April May June Total labor hours needed Budgeted variable overhead Budgeted fixed overhead Total budgeted factory overhead