1) LHU Corporation makes and sells a product called Product WZ. Each unit of Pro
ID: 2379665 • Letter: 1
Question
1) LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.4 hours of direct labor at the rate of $30.00 per direct labor-hour.
The company plans to sell 35,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 570 and 150 units, respectively. Budgeted direct labor costs for June would be: (Do not round intermediate calculations.)
Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,400 direct labor-hours will be required in May. The variable overhead rate is $1.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,470 per month, which includes depreciation of $8,880. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
1) LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.4 hours of direct labor at the rate of $30.00 per direct labor-hour.
The company plans to sell 35,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 570 and 150 units, respectively. Budgeted direct labor costs for June would be: (Do not round intermediate calculations.)
Explanation / Answer
1. Calculation of no. of units produced during the month of june
Labour hrs reqd for each unit of WZ=3.4hrs
Labour hrs reqd for 34580 units=3.4hrs*34,580 =117572hrs
Labour wage rate=$30 per hr
hence Budgeted direct labor costs for June would be =$3,527,160....ans
2.variable overheads=8400hrs*$1.30=$10,920
Fixed overheads=$100,470-$8880=$91590
Total manuf overheads= $102510....ans
Sales 35000 Add: closing stk 150 Less:opening stk 570 No. of units produced 34580Related Questions
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