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

Sunland's Salsa

Production Costs

April 2020

Production20,000

Jars of Salsa

Ingredient cost (variable)$12,000Labor cost (variable)8,400Rent (fixed)5,000Depreciation (fixed)6,000Other (fixed)1,000Total$32,400

(a)

Using this information, prepare a budget for May. Assume that production will increase to24,000jars of salsa, reflecting an anticipated sales increase related to a new marketing campaign.

Sunland's Salsa

Budgeted Production Costs

May 2020

Production24,000

Jars of Salsa

Ingredient cost$ 14400

Labor cost 10080

Rent 5000

Depreciation 6000

Other 1000

Total $ 36480

(b1)

Your answer is correct.

Does the budget suggest that additional workers are needed? Yes

Attempts: 1 of 1 used

(b2)

Suppose the wage rate is $15per hour. How many additional labor hours are needed in May?

Additional labor hours 112

(c1)

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 $