Presented is slected first quarter budget data for the barney company

sales january 25000 units

Feb. 20000 units

march 42000 units

Aditional information

- each unit of finsihed product requires two pounds of raw materials.

- barney maintains ending finished goods inventories equal to 25 percent of the following months budgeted sales

- barney maintains raw materials inventories equal to 20 percent of the following months budgeted production

- january 1 inventories are in line with barney's inventory policy

presented is additional information for the barney company

- price per pound raw materials $25

- direct labor per unit of finished product 0.5 hours at $20 per hour

- total monthly factory overhead $150000 +$10 per direct labor hour

Barneys total manufactoring cost budget for january is?

i know the answer i just dont understand where the calculation came from.. can someone expand the calculations for me?

direct materials (47500 x 25)= 1187500

direct labor 23750 x 50 x20= 237500

variable factory overhead 23.75 X .50 X 10 = 118750

fixed factory overhead 150000

= 1693750 answer