ACTG2020_Week8 Ch9_2014

Be lets prepare the direct labour budget lets the

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Unformatted text preview: dget. LO 2 The Direct Labour Budget LO 2 The Direct Labour Budget Greater of labour hours required Greater of labour hours required or labour hours guaranteed. or labour hours guaranteed. LO 2 The Direct Labour Budget LO 2 The Manufacturing Overhead Budget Direct Labourd Labour e et Budget Budget pl Manufacturing Overhead Budget om C The manufacturing overhead budget provides a The schedule of all costs of production other schedule than direct materials and direct labour. LO 2 Manufacturing Overhead Budget At Royal, manufacturing overhead is applied to units of product on the basis of direct labour hours. The variable manufacturing overhead rate is $20 per direct labour hour. Fixed manufacturing overhead is $50,000 per month and includes $20,000 of noncash costs (primarily depreciation of plant assets). LO 2 Manufacturing Overhead Budget Direct Labour Budget. LO 2 Manufacturing Overhead Budget Total mfg. OH for quarter $251,000 = $49.70 per hour * Total labour hours required 5,050 LO 2 Manufacturing Overhead Budget Depreciation is a noncash charge. Depreciation is a noncash charge. LO 2 The Ending Finished Goods Inventory Budget Manufacturing Overhead Overhead d te e Budget Budget pl om C Ending Finished Goods Inventory Budget After computing unit product costs, the carrying After cost of the unsold units is computed on the ending finished goods inventory budget. ending LO 2 Ending Finished Goods Inventory Budget Production costs per unit Quantity Cost Direct materials 5.00 lbs. $ 0.40 Direct labour 0.05 hrs. $ 10.00 Manufacturing overhead Total $ 2.00 0.50 Budgeted finished goods inventory Ending inventory in units Unit product cost Ending finished goods inventory Direct labour budget. LO 2 Ending Finished Goods Inventory Direct materials Budget budget and information. budget and information. Direct labour budget. Production costs per unit Quantity Cost Direct materials 5.00 l bs. $ 0.40 Direct labour 0.05 hrs. $ 10.00 Manufacturing overhead 0.05 hrs. $ 49.70 Budgeted finished goods inventory Endin...
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This note was uploaded on 03/28/2014 for the course ACTG 2020 taught by Professor Lizfarrel during the Spring '11 term at York University.

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