Budgeted Income Statement

Budgeted Income Statement - predetermined overhead rate of...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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 
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online