Wyckam Manufacturing Inc. has provided the following information concerning its

Question

Wyckam Manufacturing Inc. has provided the following information concerning its manufacturing costs:

For example, utilities should be $1,400 per month plus $0.25 per machine-hour. The company expects to work 4,400 machine-hours in June. Note that the company’s direct labor is a fixed cost.

Required:

Prepare the company’s planning budget for June.

Fixed Cost
per Month Cost per
Machine-Hour Direct materials $ 5.50 Direct labor $ 42,000 Supplies $ 0.10 Utilities $ 1,400 $ 0.25 Depreciation $ 15,400 Insurance $ 11,300

Explanation / Answer

Planning budget Direct materials 24200 =4400*5.5 Direct labor 42000 Supplies 440 =4400*0.1 Utilities 2500 Depreciation 15400 Insurance 11300 Total expenses 95840

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.