Refer to Exercise 20-25. For the second quarter, prepare (1) A direct labor budget (2) A factory

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Refer to Exercise 20-25. For the second quarter, prepare
(1) A direct labor budget
(2) A factory overhead budget.
Exercise 20-25
Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It forecasts sales of 225,000 units in the second quarter and 262,500 units in the third quarter. It also plans production of 52,500 units for the third quarter. Based on this information, the company plans to produce 240,000 units in the second quarter. Other information is as follows:
Direct materials . . . . . . . . ........................ ...... Each unit requires 0.60 pounds of a key raw material, priced at $175 per pound. The
company plans to end each quarter with an
ending inventory of materials equal to 50% of next quarter's budgeted materials requirements.
Direct labor... . . . . . . . . . . . . . ..........................Each finished unit requires 4 direct labor hours,
at a cost of $9 per hour.
Variable overhead . . ............................ . . . . . Applied at the rate of $11 per direct labor hour.
Fixed overhead . . . . . . . . ............................ . Budgeted at $450,000 per quarter
Prepare a direct materials budget for the second quarter.
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
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