Gannon Company manufactures baseball bats. Each bat requires: 8 pounds of direct

Question

Gannon Company manufactures baseball bats. Each bat requires: 8 pounds of direct materials per unit produced at a cost of 53 per pound 0.5 direct labor hours per unit produced at a rate of $18 per hour Variable manufacturing overhead is charged at a rate of $3 per direet labor hour Fixed manufacturing overhead is $4,000 per month. The company's policy is to maintain a direct materials ending inventory equal to 20% of the next month's requirement. materials At the end of March the company had 5,280 pounds of direct materials in inventory The company's units production budget reports the following: Production Budget Apri May Units to be produced 3,300 4,600 4.800 Required: Prepare adollarsbudgetforMARC?LONLY for: (I) Direct materials (2) Direct labor overhead.

Explanation / Answer

a)

b)

c)

Direct Material March Units to be Produced 3300 Direct Material Cost (8*$3*units) 79200 Required Ending Inventory 22080

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