15.49 - 15.49 (40 min) Production and activity-based...

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15.49 (40 min) Production and direct-labor budgets; activity-based overhead budget a. Production and direct-labor budgets B UTLER C ORPORATION B UDGET FOR P RODUCTION AND D IRECT L ABOR F OR THE F IRST Q UARTER OF 20 X 1 Month Januar y Februar y March Quarte r Sales (units). ............................... 10,000 12,000 8,000 30,000 Add: Ending inventory*. ............... 16,000 12,500 13,500 13,500 Total needs. ................................ 26,000 24,500 21,500 43,500 Deduct: Beginning inventory. ....... 16,000 16,000 12,500 16,000 Units to be produced. .................. 10,000 8,500 9,000 27,500 Direct-labor hours per unit. ......... × 1 × 1 × .75 Total hours of direct labor time needed. ............................ 10,000 8,500 6,750 25,250 Direct-labor costs: Wages ($16.00 per DLH) .......... $160,0 00 $136,0 00 $108,0 00 $404,0 00 Pension contributions ($.50 per DLH). ...................... 5,000 4,250 3,375 12,625 Workers' compensation insurance ($.20 per DLH). ...... 2,000 1,700
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This note was uploaded on 11/25/2010 for the course ACCT 33010 taught by Professor Staff during the Spring '08 term at Kent State.

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15.49 - 15.49 (40 min) Production and activity-based...

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