Answer:
Instructions are below.
Explanation:
Giving the following information:
Production Budget
March= 3,400
April= 5,400
May= 5,200
A) Direct materials:
Each sculpture requires 9 pounds of direct materials at a cost of $3 per pound.
Desired ending inventory= 30% of the next month's materials requirement.
Beginning inventory= 5,080 pounds
Purchases= production + desired ending inventory - beginning inventory
March (pounds)
Production= 3,400*9= 30,600
Ending inventory= (5,400*9)*0.3= 14,580
Beginning inventory= (5,080)
Total pounds= 40,100
Total cost= 40,100*3= $120,300
April (pounds)
Production= 5,400*9= 48,600
Ending inventory= (5,200*9)*0.3= 14,040
Beginning inventory= (14,580)
Total pounds=
Total cost= 48,060*3= $144,180
B) Direct labor:
0.4 direct labor hours at a rate of $16 per hour.
March:
Direct labor hours= 3,400*0.4= 1,360
Direct labor costs= 1,360*16= $21,760
April:
Direct labor hours= 5,400*0.4= 2,160
Direct labor costs= 2,160*16= $34,560
C) Manufacturing overhead:
Variable manufacturing overhead is charged at a rate of $2 per direct labor hour. Fixed manufacturing overhead is $4, 200 per month.
March:
Variable overhead= 2*1,360= $2,720
Fixed overhead= 4,200
Total overhead= $6,920
April:
Variable overhead= 2*2,160= $4,320
Fixed overhead= 4,200
Total overhead= $8,520
