Solution
MCO LEATHER GOODS | ||
Direct Materials Budget | ||
For the Months of September and October | ||
September | October | |
Budgeted production (units) | 5300 | 6600 |
Materials requirements per unit (lbs.) | 2 | 2 |
Materials needed for production (lbs.) | 10600 | 13200 |
Budgeted ending inventory (lbs.) | 2640 | 2400* |
Total materials requirements (lbs.) | 13240 | 15600 |
Budgeted beginning inventory (lbs.) | 3580 | 2640 |
Materials to be purchased (lbs.) | 9660 | 12960 |
Direct material cost per lb. | $ 4.00 | $ 4.00 |
Total budgeted direct materials | $ 38,640.00 | $ 51,840.00 |
*6000 x 2 x 20%
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MCO LEATHER GOODS | ||
Direct Labor Budget | ||
For the Months of September and October | ||
September | October | |
Budgeted production (units) | 5300 | 6600 |
DL hours required per unit | 0.7 | 0.7 |
Total direct labor hours needed | 3710 | 4620 |
Direct labor rate per hour | $ 19.00 | $ 19.00 |
Total budgeted direct labor | $ 70,490.00 | $ 87,780.00 |
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MCO LEATHER GOODS | ||
Factory Overhead Budget | ||
For the Months of September and October | ||
September | October | |
Total direct labor hours needed | 3710 | 4620 |
VOH rate per DL hour | $ 3.00 | $ 3.00 |
Budgeted variable overhead | $ 11,130.00 | $ 13,860.00 |
Budgeted fixed overhead | $ 16,000.00 | $ 16,000.00 |
Total budgeted factory overhead | $ 27,130.00 | $ 29,860.00 |
MCO Leather Goods manufactures leather purses. Each purse requires 2 pounds of direct materials at a...
MCO Leather Goods manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $4 per pound and 0.7 direct labor hours at a rate of $17 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $20,000 per month. The company’s policy is to end each month with direct materials inventory equal to 30% of the next month’s materials requirement. At the end of August...
MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $4 per pound and 0.7 direct labor hours at a rate of $19 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $19,000 per month. The company's policy is to end each month with direct materials inventory equal to 40% of the next month's materials requirement. At the end of August the...
MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $4 per pound and 0.7 direct labor hours at a rate of $13 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $17,000 per month. The company’s policy is to end each month with direct materials inventory equal to 20% of the next month’s materials requirement. At the end of August the...
MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $4 per pound and 07 direct labor hours at a rate of $12 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $18,000 per month. The company's policy is to end each month with direct materials inventory equal to 40% of the next month's materials requirement. At the end of August the...
MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $5 per pound and 0.7 direct labor hours at a rate of $18 per hour. Variable manufacturing overhead is charged at a rate of $2 per direct labor hour. Fixed manufacturing overhead is $10,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's materials requirement. At the end of August the...
MCO Leather Goods manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $3 per pound and 07 direct labor hours at a rate of $20 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour Fixed manufacturing overhead is $12,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's materials requirement. At the end of August...
MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 direct te of $18 per hour. Variable manufacturing overhead is charged at a rate of $2 per direct labor hour. Fixed manufacturing overhead is $15,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's materials requirement. At the end of August the company had 3,080 pounds...
HOW DO I CALCULATE? MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $4 per pound and 0.7 direct labor hours at a rate of $10 per hour. Variable manufacturing overhead is charged at a rate of $2 per direct labor hour. Fixed manufacturing overhead is $16,000 per month. The company's policy is to end each month with direct materials inventory equal to 20% of the next month's materials requirement. At the...
Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 MCO Leather Goods manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $5 per pound and 0.7 direct labor hours at a rate of $13 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $18,000 per month. The company's policy is to end each month with direct materials inventory equal to...
MCO Leather Goods manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hours at a rate of $11 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $15,000 per month. The company’s policy is to end each month with direct materials inventory equal to 20% of the next month’s materials requirement. At the end of August...