Mama Italian Sauce is in the process of preparing a production cost budget for May. The actual
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Mama Italian Sauce
Production Cost Budget
April 2008
Production - Jars of sauce ............................20,000
Ingredient cost (variable) ........................... $16,000
Labor cost (variable) ....................................9,000
Rent (fixed)................................................4,000
Depreciation (fixed) .................................... 6,000
Other (fixed) .............................................1,000
Total.......................................................$36,000
Using this information, prepare a budget for May stating the total amount for the May budget. Assume the budget will increase to 25,000 jars of sauce reflecting anticipated sales increase related to a new marketing campaign
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