Question

Scholastic Furniture, Inc. manufactures a variety of desks, chairs, tables, and shelf units that are sold to public school systems throughout the Midwest. The controller of the company’s Desk Division is currently preparing a budget for the second quarter of the year. The following sales forecast has been made by the division’s sales manager.

April	10,000	desk-and-chair sets
May	12,000	desk-and-chair sets
June	15,000	desk-and-chair sets

Each desk-and-chair set requires 10 board feet of pine planks and 1.5 hours of direct labor. Each set sells for $50. Pine planks cost $.50 per board foot, and the division ends each month with enough wood to cover 10 percent of the next month’s production requirements. The division incurs a cost of $20 per hour for direct-labor wages and fringe benefits. The division ends each month with enough finished-goods inventory to cover 20 percent of the next month’s sales.

Required:

Complete the following budget schedules.

1. Sales budget.

2. Production budget (in sets).

3. Raw-material purchases.

4. Direct-labor budget.

   Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Direct-labor budget: (Round "Direct labor hours per set" to 1 decimal place.) May June April 10,400 Planned production (sets) Direct-labor hours per set Direct-labor hours required 1.5 15,600 Cost per hour Planned direct-labor cost $ 312,000 $ 0

Answer 1

Direct labor budget

	April	May	June
Planned production	10400	12600
Direct labor hours per set	1.50	1.50
Direct labor hours required	15600	18900
Cost per hour	20	20
Planned direct labor cost	312000	378000