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kirill115 [55]
2 years ago
9

Galactic Inc. manufactures flying drone toys. Sales units for January, February, March, April and May were 320, 300, 372, 332, a

nd 400 respectively. Budgeted production in units for January, February, and March were 315, 318, and 362 respectively. Each unit requires 3 direct labor hours and Galactic’s hourly labor rate is $16 per hour. The company’s variable overhead is $5.00 per unit produced and its fixed overhead is $5,600 per month..
Required:
a. Determine Galactic's direct labor budget for the first quarter.
b. Determine Galactic's manufacturing overhead budget for the first quarter
Business
1 answer:
AVprozaik [17]2 years ago
8 0

Answer:

Direct labor costs= $47,760

total manufacturing overhead= $10,575

Explanation:

Giving the following information:

Production= 315 + 318 + 362= 995 units

Each unit requires 3 direct labor hours.

Hourly rate= $16

Variable overhead per unit= $5

Fixed overhead= $5,600

<u>First, we need to calculate the direct labor hours:</u>

<u />

Direct labor hours= 995*3= 2,985

<u>Now, the direct labor costs:</u>

Direct labor costs= $47,760

<u>Finally, the total manufacturing overhead:</u>

total manufacturing overhead= 5,600 + 5*995

total manufacturing overhead= $10,575

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A plant's fixed overhead costs total $500,000 for a year to produce 400,000 widgets, among other items. If machine‐hours are use
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Answer:

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