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Preparing a Direct Labor Budget Patrick Inc, makes industrial solvents. Planned production in units for the first three months of the coming year is: January
Preparing a Direct Labor Budget Patrick Inc, makes industrial solvents. Planned production in units for the first three months of the coming year is: January 40,000 February 50,000 March 65,000 Each drum of industrial solvent takes 0.3 direct labor hours. The average wage is $18.20 per hour. Required: Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer Patrick Inc. Direct Labor Budget For the Coming First Quarter Direct Labor Budget: January February March Units to be produced Direct labor hrs per unit Total Total direct labor hrs Wage rate $ Direct labor cost Structuring the Sell-or-Process-Further Decision Bart's Butters receives 1,000,000 containers of raw milk each period that it subsequently processes into consumable milk by adjusting the fat content, adding vitamins, and destroying any potentially harmful bacteria. For Bart's, one container equals one gallon of consumable milk. Bart's then must decide whether to sell its consumable milk at split-off or to process it further into butter. Bart's normally sells consumable milk for a per-gallon price of $3. Alternately, each gallon of milk can be processed further into one-half tub of butter (le, one gallon of milk equals 0.5 gallon or butter) at an additional cost of $1.50 per tub or butter. Also, butter can be sold for $6.00 per tub, Required: 1. What is the contribution to income from selling the consumable milk? 2. What is the contribution to income from processing the consumable milk into butter? 3. Should Bart's continue to sell the consumable milk or process it further into butter
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