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Unformatted text preview: purchases to be $297,000 in quarter 1 and $439,500 in quarter 2. Hint: Prepare the following budgets: 1. Sales budget 2. Production budget 3. Direct materials budget for Gumm 4. Direct Labor Budget P18-1A Matt Reiss owns the Fredonia Barber Shop. He employs five barbers and pays each a base rate of $1,000 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base rate, each barber also receives a commission of $5.50 per haircut. Other costs are as follows. $200 per month $900 per month Barber supplies $0.30 per haircut $175 per month plus $0.20 per haircut $25 per month Matt currently charges $10 per haircut. Instructions (a) Determine the variable cost per haircut and the total monthly f (b) Compute the break-even point in units and dollars....
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- Fall '08