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max2010maxim [7]
3 years ago
10

Miami Solar manufactures solar panels for industrial use. The company budgets production of 4,900 units (solar panels) in July a

nd 4,900 units in August. Each unit requires 5 hours of direct labor at a rate of $16 per hour. Variable factory overhead is budgeted to be 70% of direct labor cost, and fixed factory overhead is $180,000 per month. Prepare a factory overhead budget for August.
Business
1 answer:
Wewaii [24]3 years ago
7 0

Answer:

Overhead budget:

Variable overhead= 274,400

Fixed overhead= 180,000

Total overhead= $454,400

Explanation:

Giving the following information:

Production= 4,900 units

Each unit requires 5 hours of direct labor at a rate of $16 per hour.

Variable factory overhead is budgeted to be 70% of direct labor cost

Fixed factory overhead is $180,000 per month.

First, we need to determine the direct labor cost:

Direct labor cost= (4,900*5)*16= $392,000

Now, we can calculate the overhead budget:

Overhead budget:

Variable overhead= (0.7*392,000)= 274,400

Fixed overhead= 180,000

Total overhead= $454,400

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To compete in the automobile​ market, Tesla must make many strategic decisions such as whether to introduce a new car​ model, ho
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What is the permeter of a rectangle
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waterloo, ltd. manufactures a component used in aircraft navigation systems. demand has been strong and the executive staff at w
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To meet the target the projected output level for next year required is 712,750.

What is sales budget ?

A sales budget is a financial strategy that projects the entire income of a business over a given time frame. To forecast the performance of the company, it relies on two factors: the volume of products sold and the price at which they are sold.

The calculation of the production level required to accomplish the goals for the following year is presented below:

Ending Inventory (662,000 ÷ 12 × 1.5) 82,750

Sales Budget                                    662,000

Total inventory required                744,750

Less Beginning Inventory             -32,000

Production                                    712,750  

Question:

Waterloo, Ltd. manufactures a component used in aircraft navigation systems. Demand has been strong and the executive staff at Waterloo is planning for next year. Yesterday, you were called into a budgeting meeting where production plans are being reviewed. You learn that the inventory policy at Waterloo is to hold one and one-half months’ worth of sales (to avoid issues with transportation disruptions). The sales budget for next year is 662,000 units, spread evenly over the year. Because of an unexpected increase in demand, inventory at the end of this year is expected to be only 32,000 units. The capacity of the plant is 702,000 units annually.1. What production level next year will be required to meet the targets? (Do not round intermediate calculations.)

To learn more about sales budget click on the link below:

brainly.com/question/16821253

#SPJ4

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