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shusha [124]
4 years ago
9

Creative product differentiation can enable a small business to increase market share.

Business
1 answer:
Harrizon [31]4 years ago
3 0
The answer is "true".
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Read 2 more answers
MCO Leather manufactures leather purses . Each purse requires 2 pounds of direct materials at a cost of $ 5 per pound and 0.7 di
zmey [24]

Answer:

MCO Leather Manufacturing Company

1. Direct Materials Budget

                                    September  October

Materials requirement   9,778       13,000

Ending inventory           3,900         3,780

Materials available       13,678        16,780      

Beginning inventory     4,280         3,900

Purchases  (pounds)    9,398        12,880

Cost of purchases  $46,990     $64,400

2. Direct labor budgets for September and October:

                                    September  October

Units to be produced   4,889         6,500

Direct labor hours        3,422         4,550

Direct labor costs     $41,064    $54,600

3. Factory Overhead Budgets for September and October:

                                    September  October

Units to be produced   4,889         6,500

Variable overhead     $6,845        $9,100

Fixed overhead          13,000        13,000

Total overhead         $19,845     $22,100

Explanation:

a) Data and Calculations:

Direct materials required per purse = 2 pounds

Cost of a pound of direct materials = $5

Direct materials cost per unit = $10 ($5 * 2)

Direct labor cost per unit = $8.40 (0.7 * $12)

Variable overhead = $2 per direct labor hour

Variable overhead per unit = $1.40 ($2 * 0.7)

Fixed manufacturing overhead per month = $13,000

Desired ending inventory of direct materials = 30% required the next month

August ending direct materials inventory = 4,280 pounds

Production Budget   September  October  November

Units to be produced   4,889         6,500        6,300

Materials requirement 9,778        13,000       12,600

1. Direct Materials Budget

                                  September  October  November

Materials requirement   9,778       13,000       12,600

Ending inventory           3,900         3,780

Materials available       13,678        16,780      

Beginning inventory     4,280         3,900         3,780

Purchases  (pounds)    9,398        12,880

Cost of purchases  $46,990     $64,400

2. Direct labor budgets for September and October:

                                  September  October  November

Units to be produced   4,889         6,500        6,300

Direct labor hours        3,422         4,550         4,410

Direct labor costs     $41,064    $54,600   $52,920

3. Factory Overhead Budgets for September and October:

                                 September  October  November

Units to be produced   4,889         6,500        6,300

Variable overhead     $6,845        $9,100     $8,820

Fixed overhead          13,000        13,000      13,000

Total overhead         $19,845     $22,100    $21,820

7 0
4 years ago
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