Question

please answer all the required ones #1-3b

direct labor rate: $18 per hour

direct material cost: $3 per pound

Variable overhead rate (based on direct labor hours): $25 per direct labor hour

Check my work 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. 0.72 points Sales Forecast & Production Budget (in Units) eBook Print 1,500 References Budgeted Production Sales Forecast 1,200- Budgeted Production 900+ Sales Forecast 600 300+ Screenshot

Answer 1

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

2.

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

3a. & 3b.

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