Required information

Ramos Co. provides the following sales forecast and production budget for the next four months.

	April		May		June		July
Sales (units)	660		740		690		760
Budgeted production (units)	600		730		700		700

The company plans for finished goods inventory of 280 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 20% of next months production needs. Beginning direct materials inventory for April was 600 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.40 hours of direct labor at the rate of $15 per hour. The company budgets variable overhead at the rate of $19 per direct labor hour and budgets fixed overhead of $9,600 per month.

1. Prepare a direct labor budget for April, May, and June. 2. Prepare a factory overhead budget for April, May, and June.

Prepare a direct labor budget for April, May, and June. (Enter your direct labor hours (hrs.) per unit in two decimal places.)

RAMOS CO.
Direct Labor Budget
For April, May, and June
	April	May	June
Budgeted production (units)	600	730	700	units
Total labor hours needed
Budgeted direct labor cost

• Required 1
• 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