Answer:
Direct material= $19,500
Direct labor= $78,000
Overhead= $19,500
Explanation:
Giving the following information:
Direct materials costs are $3, direct manufacturing labor is $12, and manufacturing overhead is $3 per vase.
The following inventory levels apply to 2019:
Beginning inventory - Ending inventory
Direct materials 3,000 units 3,000 units
Finished goods inventory 300 units 500 units
Sales= 9,000 units
First, we need to determine the number of units to be produced:
Production= sales + desired ending inventory - beginning inventory
Production= 9,000 + 500 - 3,000= 6,500
Purchases (direct material)= produciton + desired ending inventory - beginning inventory
Purchases= 6,500 + 3,000 - 3,000= 6,500
Now, we can calculate the budgeted costs:
Direct material= 3*6,500= $19,500
Direct labor= 12*6,500= $78,000
Overhead= 3*6,500= $19,500
