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Delray Manufacturing needs to better budget and analyze costs. While Delray has experienced high sales growth, it has struggled to effectively manage costs and inventories. Delray aims to end each month with direct materials inventory equal to 40% of next month’s production needs. Each finished unit requires 4 pounds of direct materials and 2 hours of direct labor. Delray budgets $12,000 of fixed overhead costs per month. A Tableau Dashboard is provided to aid our analysis.

Sales Forecast & Production Budget (in Units) 1.500+ Budgeted Production Sales Forecast 1.200 Budgeted Production Sales Forec

budgeted production: april 880 units. may 1,100 units. jun 1,075 units. july 1,125 units.
Sales forecast: april 805 units. may 900 units. jun 1025 units. july 875 units.

Ending Direct Materials Inventory by Month March April Solve for this value May Solve for this value June Solve for this valu

March: Direct materiald (pounds): 1,408 pounds.

Direct labor rate Direct materials cost Variable overhead rate tableau 1. Prepare a direct labor budget for each month of Apr
DELRAY MANUFACTURING Direct Labor Budget For April, May, and June April May 880 1 June 1,075 units ,100 Budgeted production (
May June DELRAY MANUFACTURING Factory Overhead Budget For April, May, and June April Total labor hours needed Variable factor
The company is considering hiring more skilled workers. These workers would increase the direct labor rate to $21 per hour, a

direct labor rate $18 per hour. direct materials cost: $3 per pound VOH rate: $25 per direct labor hour
business   accounting   
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Answer #1
DELRAY MANUFACTURING
Direct Labor Budget
For April, May, and June
April May June
Budgeted production (units) 880 1100 1075
Direct labor hours per unit (hrs.) 2 2 2
Total labor hours needed 1760 2200 2150
Direct labor rate (per hour) $                    18 $               18 $                 18
Budgeted direct labor cost 31680 39600 38700
DELRAY MANUFACTURING
Factory Overhead Budget
For April, May, and June
April May June
Total labor hours needed 1760 2200 2150
Variable factory overhead rate per direct labor hr. $                    25 $               25 $                 25
Budgeted variable overhead 44000 55000 53750
Budgeted fixed overhead 12000 12000 12000
Total budgeted factory overhead 56000 67000 65750
DELRAY MANUFACTURING
Direct Labor Budget for April
Does Not Hire Does Hire
Budgeted production (units) 880 880
Direct labor hours per unit (hrs.) 2 1.5
Total labor hours needed 1760 1320
Direct labor rate (per hour) $                    18 $               21
Budgeted direct labor cost 31680 27720
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