Selling price = $15 per unit

Variable costs - variable manufacturing costs = $5 per unit

variable selling costs = $2 per unit

Fixed costs - Fixed manufacturing costs = 4 per unit

Fixed selling costs = $1 per unit

Actually production unit = 102000 units

Sold units = 96000 units

Prepare an income statement for the year ended for the year using Absorption costing

Question 2 :

September october November December January

sales (units) 8000 12000 13000 16000 15000

Direct manufacturing labours

hour per unit 1.79 1.75 1.70 1.65 1.60

Direct manufacturing labour rate per unit $15.75 $16.00 $16.50 $17.50 $17.50

Ending inventory required is the next month sales , plus one half the following months sales

The ending inventory in august was 15000 units

Each employee is required to contributed to canada pension plan in the order of 4.9% of wages, this is matched by the employer

Workers compensation expenses are 1.9% of the wage total

Employment insurance is 1.85% of wages and the employer pays 1.4 times the rate charged to the employee.

Required :

prepare a labour budget showing production requirements, labour hours and costs for the month of october