chapter 20 question 15

5 Required information 12 Use the following information for the Exercises below. Ramos Co. provides the following sales forecast and production budget for the next four months. Sales (units) Budgeted production (units) April 660 600 May 740 730 June 690 700 July 760 700 The company plans for finished goods inventory of 280 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 20% of next month's production needs. Beginning direct materials inventory for April was 600 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.40 hours of direct labor at the rate of $15 per hour. The company budgets variable overhead at the rate of $19 per direct labor hour and budgets fixed overhead of $9,600 per month. Exercise 20-9 Manufacturing: Direct labor and factory overhead budgets LO P1 1. Prepare a direct labor budget for April, May, and June. 2. Prepare a factory overhead budget for April, May, and June. Required information Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a factory overhead budget for April, May, and June. RAMOS CO. Factory Overhead Budget For April, May, and June April May June Total labor hours needed Budgeted variable overhead Budgeted fixed overhead Total budgeted factory overhead 15 Exercise 20-9 Manufacturing: Direct labor and factory overhead budgets LO P1 rt 2 of 2 1. Prepare a direct labor budget for April, May, and June. 2. Prepare a factory overhead budget for April, May, and June. Complete this question by entering your answers in the tabs below. ts Book Required 1 Required 2 Hint Prepare a direct labor budget for April, May, and June. (Enter your direct labor hours (hrs.) per unit in two decimal places.) rint RAMOS CO. rences Direct Labor Budget For April, May, and June April May June Budgeted production (units) 600 730 700 units Total labor hours needed Budgeted direct labor cost