Unformatted text preview: ls and schools. Ron Ron plans to produce 1,800 tables next month. It takes 20 minutes of labor time to assemble a table. How many employees (fractional employees are acceptable—consider them part time) will be required next month for this assembly work? It takes 20 minutes or 1/3 labor-hour to assemble a table. It Assembly hours for next month: 1,800 * 1/3 = 600 hours Hours worked by a full time employee per month: Hours 40 hours * 4 weeks = 160 hours 40 Employees required for next month: 600 / 160 = 3.75 employees Employees 3.75 Chapter 6 Master Budget & Responsibility Accounting Responsibility
Manufacturing overhead costs budget Depends on how costs vary with respect to Depends cost driver cost
Variable manufacturing overhead costs (i.e. Variable supplies, power, indirect manufacturing overhead labor) all vary with respect to a cost driver – for example: direct labor hours example: Fixed manufacturing overhead costs are constant Fixed (i.e. taxes, insurance, depreciation) (i.e. Chapter 6 Master Budget & Responsibility Accounting Responsibility
Ending inventories budget Unit costs of inventory started and completed Unit during the period during Calculates the total dollars associated with Calculates ending finished goods inventory ending Chapter 6 Master Budget & Responsibility Accounting Responsibility
Cost of goods sold budget Summarized from previous budgets
Beginning finished goods inventory Direct material used Direct manufacturing laobor Manufacturing...
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This note was uploaded on 10/26/2009 for the course ACTP 5004 taught by Professor Montesarchio during the Summer '08 term at Nova Southeastern University.
- Summer '08