The production budget for Manner Company shows units to be produced as follows:

Question

The production budget for Manner Company shows units to be produced as follows: July, 620; August, 680 September, 540. Each unit produced requires two hours of direct labor. The direct labor rate is currently $15 per hour but is predicted to be $15.75 per hour in September Prepare a direct labor budget for the months July, August, and September. (Round your "Labor rate" to 2 decimal places.) MANNER COMPANY Direct Labor Budget For July, August, and September July August Septemben 680 2 1,360 540 units 2 hours 1,080 hours Budgeted production (units) S2i Total labor hours needed Labor rate (per hour) Labor dollars 1,240

Explanation / Answer

Direct labor Budget July August Sept budgeted production(units) 620 680 540 hours required per unit 2 2 2 total labor hours needed 1240 1360 1080 labor rate(per hour) 15 15 15.75 labor dollars 18600 20400 17010 Direct materials budget units to be produced 227,000 materials requirement per unit 0.6 materials needed for production(pounds) 136200 (264500*.6*40%) budgeted ending inventory (pounds) 63480 total material requirements (pounds) 199680 beginning inventory (pounds) 54,500 materials to be purchased (pounds) 145,180 material price per pound 177 total cost of direct material purchases 25696860

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