Donnegal Company makes and sells artistic frames for pictures. The controller is

Question

Donnegal Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2014 anua Februar Marc Estimated unit sales Sales price per unit Direct labor hours per unit Wage per direct labor hour 12,000 $50.00 2.00 $8 14,000 10,000 11,000 11,000 $47.50 $47.50 $47.50 $47.50 1.50 2.00 1.50 1.50 Donnegal has a labor contract that calls for a wage increase to $9 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1 Donnegal expects to begin the year with 17,600 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 40% of the second following month's sales LINK TO TEXT (a) Your answer is partially correct. Try again Prepare a production budget for Donnegal Company by month and for the first quarter of the year DONNEGAL COMPANY Production Budget For the Quarter Ending March 31, 2014 Jan Feb Mar Sales in Units 12,000 14,000 10,000 Add Desired Endina Inventorv 18 nnn 14 4n0 15 4nn

Explanation / Answer

Donnegal Company Jan Feb Mar Apr May Sales Units          12,000      14,000      10,000      11,000      11,000 DLH /Unit              2.00           2.00           1.50           1.50           1.50 Wage/DLH                    8                 8                 8                 9                 9 Production Budget Months Jan Feb Mar Total Qtr Apr May Sales Units          12,000      14,000      10,000      36,000      11,000      11,000 Add: Desired Ending Stock          18,000      14,400      15,400 Less :Opening stock          17,600      18,000      14,400 Prequired Production Units          12,400      10,400      11,000      33,800 Direct Labor Hrs/Unit              2.00           2.00           1.50 Direct Labor Budget Months Jan Feb Mar Total Qtr Prequired Production Units          12,400      10,400      11,000      33,800 Direct Labor Hrs/Unit              2.00           2.00           1.50 Total Direct Labor Hrs Required          24,800      20,800      16,500      62,100 Direct Labor rate/Hr                    8                 8                 8 Total Direct Labor Wages       198,400    166,400    132,000    496,800

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