Exercise 23-10 Lowell Company makes and sells artistic frames for pictures. The

Question

Exercise 23-10 Lowell Company makes and sells artistic frames for pictures. The controller is responslble for preparing the master budget and has accumulated the following information for 2017 Estimated unit sales Sales price per unit Diect labor hours per unit Waga per direct lahar hour January February MarchApiMay 0,800 1100 ,700 8,408,000 50.50$48.20 $48.20 $4.20 48.20 2.0 15151.5 $9.DD..DD 0.00 $10.00 8,40 8, 2.0 Lowell has a labor cantract that calls for a wage increase to $10.00 per hour on April 1. New labor-saving machinery has been installed and wl l be fully operational by March 1. Lowell expects to begin the year with 16,350 frames on hand and has a policy of carrying an end of month inventory of 100% of the following month's sales, plus 50% of the second following month's sales.

Explanation / Answer

Req : Production Budget JAN FEB MARCH April May Estimated Unit Sales 10800 11100 8700 8400 8000 Add: Closing Inventory of finished as follows: 100% of next month sales 11100 8700 8400 50% of following month sales 4350 4200 4000 Total Ending inventory in units desired 15450 12900 12400 Total requirement 26250 24000 21100 Less: Beginning Inventory of Finished goods 16350 15450 12900 Budgeted Production units 9900 8550 8200 Req: Direct labour Budget JAN FEB MARCH Budgeted Production 9900 8550 8200 Labour hours per unit 2 2 1.5 Total labour hours requirement 19800 17100 12300 Labour cost per hour 10 10 10 Direct Labour cost budget in $ 198000 171000 123000

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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