Budgeted Income Statement

Budgeted Income Statement - predetermined overhead rate of...

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Budgeted Income Statement The budgeted or pro forma income statement is prepared after the operating budgets have been  completed. The cost of goods sold on the income statement is calculated using the per unit cost of  $11.25, which consists of $1.40 per unit for direct materials, $7.00 per unit for direct labor, and a  manufacturing overhead rate of $2.85. The overhead rate is calculated by multiplying the 
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Unformatted text preview: predetermined overhead rate of $5.70 per direct labor hour times the direct labor hours per unit of one-half hour. Quantity Unit Cost Total Cost Direct Materials Various $ 1.40 $ 1.40 Direct Labor .5 hour 14.00 7.00 Manufacturing Overhead .5 hour 5.70 2.85 Total Unit Cost $11.25...
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