Question

Prepare the direct labor budget for the year. (Round Direct labor time per unit answers to 1 decimal place, e.g. 52.7.) DELEON INC. Direct Labor Budget JB 50 JB 60 Total 398300 207700 Direct Labor Time per Unit 0.4 0.6 Total Required Direct Labor Hours 159320 124620 Direct Labor Cost per Hour 12 $ 12 Total Direct Labor Cost 1911840 1495440 $ 3407280 e Textbook and Media

Answer 1

Sales Budget
	JB 50	JB 60	Total
Units sold	403200	205000	608200
S.P	22	27
Sales	8870400	5535000	14405400
Deleon INC. - Production Budget
	JB 50	JB 60	Total
Expected Unit Sales	403200	205000
Add:- Desired ending FG Units	26,300	16,000
Total Reqd. Units	429500	221000
Less:- Beginning FG Units	31,200	13,300
Reqd. prod. Units	398300	207700	606000
Direct Materials Budget
	JB 50	JB 60	Total
Units to be produced	398300	207700	606000
DM p.u	2	2
Total Pounds needed for production	796600	415400	1212000
Add:- Desired ending DM	33,300	17,900
Total Reqd. Units	829900	433300
Less:- Beginning DM	43,500	13,100
DM purchases	786400	420200
Cost per pound	2	3
Total cost of DM purchases	1572800	1260600	2833400
Direct Labour Budget
	JB 50	JB 60	Total
Units to be produced	398300	207700	606000
Direct labour time p.u	0.4	0.6
Total hours needed for production	159320	124620	283940
Labour rate per hour	12	12
Total cost of Direct labour	1911840	1495440	3407280
Budgeted Income Statement
	JB 50	JB 60	Total
Sales	8870400	5535000	14405400
Cost of Goods sold	4838400	4510000	9348400
Gross Profit	4032000	1025000	5057000
Operating expenses :-
Selling Expenses	6,62,000	3,62,000	1024000
Administrative expenses	5,42,000	3,45,000	887000
Total Operating expenses	12,04,000	7,07,000	19,11,000
Income before interest and Income Taxes	28,28,000	3,18,000	31,46,000
Interest Expense			1,50,000
Income before Income Taxes			29,96,000
Income tax Expense (30%)			8,98,800
NET INCOME			20,97,200
COGS	403200 * 12	205000 * 22