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Unformatted text preview: Material A: $4.00 per lbs. Material B: $2.00 per lbs. f. Direct labor requirements: Department 1 Department 2 Product K 0.4 hour per unit 0.15 hour per unit Product L 0.6 hour per unit 0.25 hour per unit 1 g. Department 1 Department 2 Direct labor rate $12.00 per hour $16.00 per hour g. Estimated factory overhead costs for July: Indirect factory wages $200,000 Depreciation of plant and equipment $40,000 Power and light $25,000 Indirect materials $34,000 Total $299,000 INSTRUCTIONS: 1. Prepare a sales budget for July. 2. Prepare a production budget for July. 3. Prepare a direct materials purchases budget for July. 4. Prepare a direct labor cost budget for July. 5. Prepare a cost of goods sold budget for July. Source: Warren, Reeve, Fess. Financial & Managerial Accounting . 8 th Edition. Thomson South-Western. 2005. pp. 854-855. 2...
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