ABC company is doing the budget for month November 2021.The following data are provided. The...
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Accounting
ABC company is doing the budget for month November 2021.The following data are provided.
The company manufactures tables for schools
Sales in units
12,250
Estimated overhead cost
$11000
Estimated activity [DLH]
5000 hours
Targeted EI
2100 units
Beginning Inventory (production)
800 units
Hourly Rate for Direct Labour
$11.20
For each table produced , they need 4 square feet of woodthat cost$8.00 per square foot. The company started the month with450 tables in stock and it has decided tokeep 100 tables as ending inventory
The company uses3.5 hours of direct labour to make one table.
ABC uses DLH as the cost driver to allocate manufacturing overhead
At the end of production it charges35% margin over the unit cost
REQUIRED
Make a production budget in units
Prepare a budget for the raw materials needed
Prepare a direct labour budget for the month
Allocate cost to manufacturing overhead using direct labour hours as the activity [company uses Plant wide Predetermined Rate
What is the budgeted total product cost? Calculate the unit cost.
Using the margin provided, make a sales budget for the month
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