Babcock Builders is a well-regarded construction company that serves as a general contractor for both...
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Babcock Builders is a well-regarded construction company that serves as a general contractor for both residential and commercial construction projects. One of the company's signature features is its cabinetry. The company's founder and president, Bill Babcock, began manufacturing cabinets six years ago in an effort to capitalize on the company's reputation and the skills of its craftsmen. The company's production budget for the first seven months of the year is as follows: Units 10,000 February 17,000 13,000 18,500 22,100 24,300 26,200 Month January March April May June July Babcock's most popular cabinet is a small cherry wood cabinet typically used in bathrooms. Each completed unit requires 3.5 hours of direct labor, and the skilled labor costs an average of $25 per hour. The company applies overhead at the rate of $3 per direct labor hour. A. Prepare a direct labor budget for January through June. B. Prepare a manufacturing overhead budget for the same period
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