Problem #3

(4 points)

Gildan, Inc. is the main manufacturing of IPads in Australia. Their budgeted sales for the first quarter of the year 2017 are the following:

Months	IPads	Budgeted Production Units
January	70,000	69,000
February	55,000	58,000
March	60,000	57,000

The companys policy requires maintaining units on hand at the end of each month equal to 20% of next month's budgeted unit sales, and to maintain materials at the end of each month equal to 10% of the next month's production needs. Each IPads requires 4 pounds of material and 15 minutes of direct labor to produce. Employees are paid $15 per hour. Manufacturing overhead is applied at $5.40 per direct labor hour.

Required: Prepare a direct labor budget for the month of February 28, 2017.

Problem #4

(4 points)

During October, Minolta, Inc.'s production budget showed 4,500 units to be produced, and its sales budget showed 4,800 cameras to be sold. Budgeted manufacturing costs for October appear below:

Indirect labor	$5.00 per camera
Supplies	$6.80 per camera
Factory depreciation	$36,000
Factory supervisory salaries	30,000
Fixed factory occupancy	44,000

Required: Prepare a manufacturing overhead budget for October 31, 2017.