XYZ Corp. has prepared the following budget information for the second quarter: Various Operating Budget Information April May June Sales Forecast ( units of finished
XYZ Corp. has prepared the following budget information for the second quarter:
Various Operating Budget Information
April
May
June
Sales Forecast(unitsof finished goods)
13,000 units
19,500 units
24,700 units
Production Budget(unitsof finished goods)
14,300 units
20,540 units
22,880 units
Material Purchases Budget (unitsof material)
28,848 units
41,548 units
41,184 units
** Budgeted Cost of Goods Soldper Unit of Finished Good:
Materials:2.6 units of material @ $3.90/unit$10.14
Direct Labor: .70 hour @ $9.10/hour6.37
Variable Overhead:$2.4143/direct labor hour1.69
Fixed Overhead:1.80***
Total budgeted cost/goods/sold per unit$20.00
***Based on monthly Fixed Overhead budgeted at $45,000 ($7,500 of which is depreciation) allocated over 25,000 production units of capacity
1)Using the XYZ budget information, what wouldJUNE'SDirect Labor budget be in dollars (round to the nearest dollar
2)sing the XYZ budget information, what wouldJUNE'SVariable Overhead budget be in dollars (round to the nearest dollar)
3)Using the XYZ budget information, what amount would appear on the Cash Disbursements/Payments Budget forJUNE'SFixed Overhead
4)Using the XYZ budget information, and assuming forJUNEthe Selling Price per unit is to be $35.00/unit and Selling & Administrative Expenses are budgeted to be $150,000, what wouldJUNE'SIncome be on the Budgeted Income Statement (ignore taxes and round to the nearest dollar)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
1 Junes Direct Labor Budget Step 1 Calculate the total direct labor hours required for Junes production Direct labor hours per unit 070 hours Production units in June 22880 units TotalDirectLaborHours ...See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
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