The Bakery Department of Culbert Dessert Corporation has submitted the following forecast of fruit pies to be

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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 Second Third Fourth Quarter Quarter Quarter Quarter Units to be produced... 8,000 11,000 9,000 13,000 ..... ..


Each unit requires 0.30 direct labour-hours, and direct labour hour workers are paid $10.50 per hour. In addition, the variable manufacturing overhead rate is $1.50 per direct labour-hour. The fixed manufacturing overhead is $23,000 per quarter. The only non-cash element of manufacturing overhead is depreciation, which is $7,000 per quarter


Required:

1. Prepare the company's 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.

2. Prepare the company's manufacturing overhead budget. As per Schedule 5, your manufacturing overhead budget should also include the budgeted cash disbursements for overhead.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 9781259275814

11th Canadian Edition

Authors: Ray H Garrison, Alan Webb, Theresa Libby

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