1. Albertville Inc produces leather handbags. The production budget for the next

Question

1. Albertville Inc produces leather handbags. The production budget for the next four months is: July 5,000 units, August 7,000 units, September 7,500 units, October 8,000 units. Each handbag requires 1.3 hours of unskilled labor (paid $8 per hour) and 2.2 hours of skilled labor (paid $15 per hour). How many unskilled labor hours will be budgeted for August?

2. Banburry Place has forecast its sales for the coming months as follows:

Standard Units Deluxe Units

April 101 84

May 116 80

June 136 80

July 163 110

The standard unit sells for $202, the deluxe unit sells for $369

Prepare a sales budget for each of the three months April-June as well as the total for the quarter

Present the budget for each product as well as total sales.

Standard Deluxe Total

April ( ) ( ) ( )

Explanation / Answer

Hi,

Please find the answers as follow:

1) Unskilled Labor = 7000*1.3 = 9100

2)

Sales Budget

Month Standard Deluxe Total April 20402 30996 51398 May 23432 29520 52952 June 27472 29520 56992 Total 71306 90036 161342

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