Question

Return 3 points Fill in the blanks to make correct statements about the Direct Materials Budget The Direct Materials budget is based on the type your answer... Budget. The first step in calculating the Direct Materials Budget is to type your answer... the #units to be produced in each period by the quantity of type your answer... required for each unit. This tells me the quantity of DM needed for each period's production. I need enough direct materials for 1) the type your answer period's DM needs, and 2) a certain percentage of the type your answer... period's DM needs. Then I must subtract my type your answer.. of direct materials, which comes from the extra I bought in the previous period. Finally, I can find the quantity of Direct Materials I need to and calculate what the cost will be type your answer 2 1 point When creating the Manufacturing Overhead Budget or the Operating Expenses Budget, make sure to O only consider fixed costs, as there are no variable costs in manufacturing overhead or operating expenses. multiply variable expenses by the number of units, and add total fixed costs. multiply all expenses by the number of units. multiply fixed costs by the number of units, and add total variable costs. O Submit

Answer 1

The Direct Material budget is based on Production Budget

Multiply units with Units of material required per unit

Current

A certain % of Next period’s

Subtract Beginning Inventory

Buy/purchase and calculate the cost

Multiply variable expenses by the number of units and add total fixed costs

As variable costs vary per unit while fixed costs remain constant