The Bakery Department of Culbert Dessert Corporation has submitted the following forecast of fruit pies to be produced by quarter for the upcoming fiscal year.
First
Quarter Second
Quarter Third
Quarter Fourth
Quarter
Units to be produced
Each unit requires direct labourhours, and direct labourhour workers are paid $ per hour.
In addition, the variable manufacturing overhead rate is $ per direct labourhour. The fixed manufacturing overhead is $ per quarter. The only noncash element of manufacturing overhead is depreciation, which is $ per quarter.
Required:
Prepare the companys direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecast number of units produced.
Prepare the companys manufacturing overhead budget. As per Schedule your manufacturing overhead budget should also include the budgeted cash disbursements for overhead.
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