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Coronado Industries is planning to sell 900 boxes of ceramic tile, with production estimated at...

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Accounting

Coronado Industries is planning to sell 900 boxes of ceramic tile, with production estimated at 570 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.50 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $20 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Coronado has 2900 pounds of clay mix in beginning inventory and wants to have 4100 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month?

a. $39600

b. $9900

c. $6270

d. $25080

Sunland Company is planning to sell 1000 buckets and produce 980 buckets during March. Each bucket requires 500 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 500 grams and employees of the company are paid $18 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Sunland has 200 kilos of plastic in beginning inventory and wants to have 300 kilos in ending inventory. How much is the total amount of budgeted direct labor for March?

a. $10800

b. $176400

c. $8820

d. $5400

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