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Exercise 20-16 Manufacturing Direct materials, direct labor, and overhead budgets LO P Ormamental Sculptures Mfg...

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Exercise 20-16 Manufacturing Direct materials, direct labor, and overhead budgets LO P Ormamental Sculptures Mfg manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $3 per pound and 0 5 direct labor hours at a rate of $18 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $4,000 per month The companys policy is to maintain direct materials inventory equal to 20% of the next month's materials requirement. At the end of March the company had 5,280 pounds of direct materials in inventory. The company's production budget reports the following n Budget March April Units to be produced 3,300 4,6004 (1) Prepare direct materials budgets for March and April ORNAMENTAL SCULPTURES MFG Direct Materials Budget For the Months of March and April March April 3,300 4.600 Budgeted production (units) Materials requirements per unit (Ibs) Materials needed for production (lbs) 26400 36,800 12.480 38.880 (5.380 33.50 12.240 49,040 (12.480) 36. 560 Budgeted ending inventory (lbs.) ning inventory (Ibs ) Materials to be purchased (Ibs) 5 3.0o 30 S 100 500 $109.68

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