Question
Question Content Area Bottleneck Company has put together the following data in order to complete its operating budget for the second quarter in the current
Question Content Area Bottleneck Company has put together the following data in order to complete its operating budget for the second quarter in the current year: Line Item Description April May June July Sales (units) 73,200 68,900 65,400 67,300 Additional information: Company policy requires that 60 percent of next month's sales (in units) be in ending inventory. This policy was met in March. It takes 2.5 hours of direct labor to produce one unit. The average wage cost is $14. Variable overhead rate is $6 per direct labor hour, and fixed overhead is $15,000 per month. Required: Question Content Area A. Prepare a production budget for April, May, June and the quarter in total.
Line Item Description | April | May | June | Total |
---|---|---|---|---|
Sales in units | Sales in units | Sales in units | Sales in units | Sales in units |
Desired ending inventory | Desired ending inventory | Desired ending inventory | Desired ending inventory | Desired ending inventory |
Total needs | Total needs | Total needs | Total needs | Total needs |
Less: Beginning inventory | Less: Beginning inventory | Less: Beginning inventory | Less: Beginning inventory | Less: Beginning inventory |
Units to be produced | Units to be produced | Units to be produced | Units to be produced | Units to be produced |
then prepare a direct budget and overhead budget. thank you
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