Hansell Company’s management wants to prepare budgets for one of its products, d

Question

Hansell Company’s management wants to prepare budgets for one of its products, duraflex, for July 2013.
The firm sells the product for $79.00 per unit and has the following expected sales ( in units) for these months in 2013:

7,200

Variable manufacturing overhead is $1,150 per batch plus $73 per direct labor-hour. The company uses an actual cost system with a LIFO cost-flow assumption. In addition to variable overhead, the firm has a monthly fixed factory overhead of $49,500, of which $18,200 is depreciation expense. The firm pays all manufacturing labor and factory overhead when incurred.

h. Prepare the budgeted income statement for July 2013.

HANSELL COMPANY

_______

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Hansell Company’s management wants to prepare budgets for one of its products, duraflex, for July 2013.
The firm sells the product for $79.00 per unit and has the following expected sales ( in units) for these months in 2013:

April May June July August September 4,500 5,510 5,380 6,000 7,100

7,200

Explanation / Answer

Answer:

Sales budget For July Budgeted sales in units 6000 Budgeted Selling price per unit 79 Budgeted Sales 474000

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