Answer:
September October
1)Direct Material budget $31,320 $37,560
2)Direct Labor Budget $46,060 $60,760
3)Factory Overhead cost $23,580 $25,680
Explanation:
Material :
production (4,700*2) (6200*2) 9,400 12,400
+Closing( production *30%) 3,720 3,840
-Opening 2,680 3,720
=Purchases 10,440 12,520
* $3 cost per pound
cost of material $31,320 $37,560
Labor :
Production 4,700 6,200
* hours per unit 0.7 0.7
Total hours 3,290 4,340
* Cost per hour $14 $14
Total Cost $46,060 $60,760
Factory overhead cost:
Variable cost
Hours worked 3,290 4,340
* rate $2 $2
Variable cost $6,580 $8,680
Fixed costs $17,000 $17,000
Total Factory Overhead $23,580 $25,680
