Santiagos Salsa is in the process of preparing a production cost budget for May. Actual costs in April were:

Santiagos Salsa Production Costs April 2017
		29,000
Production		Jars of Salsa
Ingredient cost (variable)		$20,300
Labor cost (variable)		12,760
Rent (fixed)		5,000
Depreciation (fixed)		6,000
Other (fixed)		1,000
Total		$45,060

Using this information, prepare a budget for May. Assume that production will increase to 34,800 jars of salsa, reflecting an anticipated sales increase related to a new marketing campaign.

Santiago's Salsa Budgeted Production Costs May 2017
		34,800
Production		Jars of Salsa
Ingredient cost		$
Labor cost
Rent
Depreciation
Other
Total		$

Does the budget suggest that additional workers/labor hours are needed?

Suppose the wage rate is $20 per hour. How many additional labor hours are needed in May? (Round answer to 0 decimal places, e.g. 5,275.)

Additional labour hours

Calculate the actual cost per unit in April and the budgeted cost per unit in May. (Round answers to 2 decimal places, e.g. 15.20.)

		Cost per unit
Actual cost per unit in April		$
Budgeted cost per unit in May		$