Chapter 7 Example

Chapter 7 Example - Master Budget Example (chapter 7)...

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Carter is still cruising along making trikes but would like for you to help her make a  master budget for the third quarter of this year based on the following information: April                                           May                               June                              July     Sales (units) 10,000 14,000 22,000 25,000 Selling price per unit $30 DM needed per unit 10 lbs. of steel DM price  $.80 per lbs. DL needed per unit .5 hours DL rate $8/ hour VMOH per unit $1.50 per DLH incurred FMOH $800 per month ($200 is depreciation) Variable: $1.00 per unit SOLD Fixed $300 per month ($100 is depreciation) Additional information: She likes to keep 10% of the following month’s sales in stock at all times  and will start the quarter w/ 1,000 cases She likes to keep 25% of next month’s production needs in stock at all 
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This note was uploaded on 07/02/2011 for the course ACCT 226 taught by Professor Smith during the Spring '10 term at South Carolina.

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Chapter 7 Example - Master Budget Example (chapter 7)...

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