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ABC company is doing the budget for month November 2021.The following data are provided. The...

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Accounting

ABC company is doing the budget for month November 2021.The following data are provided.

The company manufactures tables for schools

Sales in units 12,250
Estimated overhead cost $11000
Estimated activity [DLH] 5000 hours
Targeted EI 2100 units
Beginning Inventory (production) 800 units
Hourly Rate for Direct Labour $11.20

For each table produced , they need 4 square feet of woodthat cost$8.00 per square foot. The company started the month with450 tables in stock and it has decided tokeep 100 tables as ending inventory

The company uses3.5 hours of direct labour to make one table.

ABC uses DLH as the cost driver to allocate manufacturing overhead

At the end of production it charges35% margin over the unit cost

REQUIRED

  1. Make a production budget in units
  2. Prepare a budget for the raw materials needed
  3. Prepare a direct labour budget for the month
  4. Allocate cost to manufacturing overhead using direct labour hours as the activity [company uses Plant wide Predetermined Rate
  5. What is the budgeted total product cost? Calculate the unit cost.

Using the margin provided, make a sales budget for the month

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