Question

Direct Materials Budget
For the year ending December 31, 2018
Plain t-shirts	Q1	Q2	Q3	Q4	Total
Units to be produced	1060	1260	1600	2000	5920
Direct materials per unit	1	1	1	1	1
Production needs	1060	1260	1600	2000	5920
Desired ending inventory	126	160	200	106	106
Total needs	1186	1420	1800	2106	6026
Less beginning inventory	58	126	160	200	58
Direct materials to be purchased	1128	1294	1640	1906	5968
Cost per t-shirt	$       3.00	$       3.00	$       3.00	$       3.00	$       3.00
Total t-shirt purchase cost $	3384	3882	4920	5718	17904
Ink:	Q1	Q2	Q3	Q4	Total
Units to be produced	1060	1260	1600	2000	5920
Direct materials per unit	5	5	5	5	5
Production needs	5300	6300	8000	10000	29600
Desired ending inventory	630	800	1000	530	530
Total needs	5930	7100	9000	10530	30130
Less beginning inventory	390	630	800	1000	390
Direct materials to be purchased	5540	6470	8200	9530	29740
Cost per ounce	$       0.20	$       0.20	$       0.20	$       0.20	$       0.20
Total ink purchase cost $	1108	1294	1640	1906	5948
Total cost of all direct materials $	4492	5176	6560	7624	23852

Direct Labor Budget
For the year ending December 31, 2018
	Q1	Q2	Q3	Q4	Total
Units to be produced	1060	1260	1600	2000	5920
Direct labor hours per unit	0.12	0.12	0.12	0.12	0.12
Production needs	127.20	151.20	192.00	240.00	710.40
Wage cost per hour	$          10	$          10	$          10	$          10	$          10
Total direct labor cost $	1272	1512	1920	2400	7104

The overhead budget shows forecasted variable and fixed overhead costs for the coming year.  For Texas Rex the variable overhead rate is $5 per direct labor hour.  Fixed overhead is budgeted at $1645 per quarter.

Overhead BudgetFor the year ending December 31, 2018

                                                Q1                    Q2                    Q3                    Q4                    Total

Budgeted Direct Labor hours

Variable Overhead Rate             _______           _______           ________         ________       _______

Budgeted Variable Overhead     

Budgeted Fixed Overhead         _______           _______           ________         _______       ________

Total Overhead Cost

Calculate the Total Unit Cost:

                Direct Materials

                Direct Labor

                Overhead                 

                Total Unit Cost

Answer 1