Pierr Manufacturing Inc. has provided the following information concerning its manufacturing costs:
| Fixed Cost per Month | Cost per Machine - Hour |
Direct materials |
| $5.70 |
Direct labor | $42,800 |
|
Supplies |
| $0.20 |
Utilities | $1,600 | $0.15 |
Depreciation | $14,900 |
|
Insurance | $11,400 |
|
For example. utilities should be $1,600 per month plus $0.15 per machine-hour. The company expects to work 4,000machine-hours in July. Note that the company’s direct labor is a fixedcost.
Required:
Prepare the company’s planning budget for manufacturing costs for July.
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