Question

Exercise 9-10 (Part Level Submission) Lowell company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2020 January Estimated unit sales Sales price per unit Direct labor hours per unit Wage per direct labor hour 10,400 $50.70 2.0 February 11,800 $48.40 2.0 57 March 8,700 $48.40 1.5 57 April ,300 $48.40 1.5 58 May ,300 $48.40 Lowell has a labor contract that calls for a wage increase to $8 per hour on April 1. New labor saving machinery has been installed and will be fully operational by March 1 Lowell expects to begin the year with 16,300 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 50% of the second following month's sales. (a) Your answer is partially correct. Try again. Prepare a production budget for Lowel Company by month and for the first quarter of the year LOWELL COMPANY Production Budget For the Quarter Ending March 31, 2020 Total 10400 Texpected Unit Sales

Answer 1

Please note that I didnt calculate the amounts for Month of May, As in the question the table is given till upto april & Last column is total column

feb maran April Jotal 20608 (9072 16asog 13696 16128 variable cost Indirect material Indirect labour mamtaince Total variable 99600 165200 91350 501750 145600 76868 13150 102466 10962 T121389 10658 130666 Gaa3e 620692 196196 37620 T8220 37620 18-220 18220 Fixed cost. Supexisor Salary Depren maintaince Total fixed Fixed cost 37620 18228 18220 1315o 68990 137980 37620 18220 18220 13150 68 ano 137980 18220 13150 68 ago T137980 150480 72680 72880 $2600 275960 551420 6809o. 137980 23600 20800 13050 | 12450 16 9900 Direct Cabour hours.