{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

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

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
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 ($.20 per DLH) ....... 2,000 1,700 1,350 5,050 Employee medical insurance ($.80 per DLH) ....................... 8,000 6,800 5,400 20,200 Employer's social security (at 7%) .................................. 11,200 9,520 7,560 28,280 Total direct-labor cost ................. $186,2 00 $158,2 70 $125,6 85 $470,1 55
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
*100 percent of the first following month's sales plus 50 percent of the second following month's sales. DLH denotes direct-labor hour.
Image of page 2
15.49 (continued) b. Use of data throughout the master budget: Components of the master budget, other than the production
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern