Foster company makes power tools. The sales budget for drills for the first four months for the year is :

months January, February, March, April

Unit sales 20,000, 15,000 , 22,000, 25,000

Foster has taken a just in time approach to production and wants only 5% of the next month's sales needs in ending inventory. January 1st inventory of drills was zero. Each drill takes 15 minutes of direct labor at $18 per hour. The factory overhead formula is $27,00 + $1.20 per direct labor hour. 

Questions: 

(1). budgeted production for January 

(2). budgeted production for February, 

(3). budgeted production for the first quarter of the year, 

(4). budgeted direct labor cost for January 

(5). budgeted direct labor cost for February 

(6). the budgeted variable overhead for the march 

(7). budgeted total overhead

Answer rating: 100% (QA)

1 Budgeted production for January 20000 7500 20750 2 Budgeted production for February 15000 11... View the full answer