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 $1,900 per month plus $0.15 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 $ 5.30 Direct labor $ 42,700 Supplies $ 0.30 Utilities $ 1,900 $ 0.15 Depreciation $ 15,300 Insurance $ 11,900

Explanation / Answer

The correct answer is :

Note :

Wyckam Manufacturing Inc. Planning Budget for Manufacturing Costs For the Month Ended June 30 Direct materials 23,320 Direct labor 42,700 Supplies 1,320 Utilities 2,560 Depreciation 15,300 Insurance 11,900 Total manufacturing cost 97,100

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