Question
In: Accounting
MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost...
MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hours at a rate of $16 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $18,000 per month. The company’s policy is to end each month with direct materials inventory equal to 30% of the next month’s materials requirement. At the end of August the company had 3,280 pounds of direct materials in inventory. The company’s production budget reports the following.
| Production Budget | September | October | November | |||
| Units to be produced | 5,500 | 6,500 | 6,300 | |||
(1) Prepare direct materials budgets for September and
October.
(2) Prepare direct labor budgets for September and
October.
(3) Prepare factory overhead budgets for September
and October.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost...
MCO Leather manufactures leather purses. Each purse requires 2
pounds of direct materials at a cost of $4 per pound and 0.7 direct
labor hours at a rate of $12 per hour. Variable manufacturing
overhead is charged at a rate of $2 per direct labor hour. Fixed
manufacturing overhead is $13,000 per month. The company’s policy
is to end each month with direct materials inventory equal to 40%
of the next month’s materials requirement. At the end of August the...
MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost...
MCO Leather manufactures leather purses. Each purse requires 3
pounds of direct materials at a cost of $3 per pound and 0.7 direct
labor hours at a rate of $19 per hour. Variable manufacturing
overhead is charged at a rate of $3 per direct labor hour. Fixed
manufacturing overhead is $13,000 per month. The company’s policy
is to end each month with direct materials inventory equal to 30%
of the next month’s materials requirement. At the end of August the...
MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost...
MCO Leather manufactures leather purses. Each purse requires 3
pounds of direct materials at a cost of $3 per pound and 0.7 direct
labor hours at a rate of $17 per hour. Variable manufacturing
overhead is charged at a rate of $2 per direct labor hour. Fixed
manufacturing overhead is $18,000 per month. The company’s policy
is to end each month with direct materials inventory equal to 30%
of the next month’s materials requirement. At the end of August the...
MCO Leather Goods manufactures leather purses. Each purse requires 3 pounds of direct materials at a...
MCO Leather Goods manufactures leather purses. Each purse
requires 3 pounds of direct materials at a cost of $4 per pound and
0.7 direct labor hours at a rate of $14 per hour. Variable
manufacturing overhead is charged at a rate of $2 per direct labor
hour. Fixed manufacturing overhead is $17,000 per month. The
company’s policy is to end each month with direct materials
inventory equal to 20% of the next month’s materials requirement.
At the end of August...
Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 MCO Leather Goods manufactures...
Exercise 20-15 Manufacturing: Direct materials, direct labor,
and overhead budgets LO P1
MCO Leather Goods manufactures leather purses. Each purse
requires 3 pounds of direct materials at a cost of $4 per pound and
0.7 direct labor hours at a rate of $10 per hour. Variable
manufacturing overhead is charged at a rate of $3 per direct labor
hour. Fixed manufacturing overhead is $16,000 per month. The
company’s policy is to end each month with direct materials
inventory equal to...
Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a...
Ornamental Sculptures Mfg. manufactures garden sculptures. Each
sculpture requires 8 pounds of direct materials at a cost of $3 per
pound and 0.4 direct labor hours at a rate of $14 per hour.
Variable manufacturing overhead is charged at a rate of $3 per
direct labor hour. Fixed manufacturing overhead is $3,300 per
month. The company’s policy is to maintain direct materials
inventory equal to 20% of the next month’s materials requirement.
At the end of February the company had...
Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 7 pounds of direct materials at a...
Ornamental Sculptures Mfg. manufactures garden sculptures. Each
sculpture requires 7 pounds of direct materials at a cost of $4 per
pound and 0.4 direct labor hours at a rate of $18 per hour.
Variable manufacturing overhead is charged at a rate of $3 per
direct labor hour. Fixed manufacturing overhead is $4,500 per
month. The company’s policy is to maintain direct materials
inventory equal to 30% of the next month’s materials requirement.
At the end of February the company had...
Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a...
Ornamental Sculptures Mfg. manufactures garden sculptures. Each
sculpture requires 8 pounds of direct materials at a cost of $3 per
pound and 0.4 direct labor hours at a rate of $16 per hour.
Variable manufacturing overhead is charged at a rate of $3 per
direct labor hour. Fixed manufacturing overhead is $3,300 per
month. The company’s policy is to maintain direct materials
inventory equal to 30% of the next month’s materials requirement.
At the end of February the company had...
Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a...
Ornamental Sculptures Mfg. manufactures garden sculptures. Each
sculpture requires 8 pounds of direct materials at a cost of $4 per
pound and 0.4 direct labor hours at a rate of $11 per hour.
Variable manufacturing overhead is charged at a rate of $3 per
direct labor hour. Fixed manufacturing overhead is $4,200 per
month. The company’s policy is to maintain direct materials
inventory equal to 20% of the next month’s materials requirement.
At the end of February the company had...
Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a...
Ornamental Sculptures
Mfg. manufactures garden sculptures. Each sculpture requires 8
pounds of direct materials at a cost of $4 per pound and 0.4 direct
labor hours at a rate of $18 per hour. Variable manufacturing
overhead is charged at a rate of $3 per direct labor hour. Fixed
manufacturing overhead is $4,900 per month. The company’s policy is
to maintain direct materials inventory equal to 30% of the next
month’s materials requirement. At the end of February the company
had...
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