Prego Sauce is in the process of preparing a production cost budget for May. The...
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Accounting
Prego Sauce is in the process of preparing a production cost budget for May. The actual costs in April were:
| Prego Sauce | |
| Production Cost Budget | |
| April 2010 | |
| Production - Jars of sauce | 20,000 |
| Ingredient cost (variable) | $16,000 |
| Labor cost (variable) | 9,000 |
| Rent (fixed) | 4,000 |
| Depreciation (fixed) | 6,000 |
| Other (fixed) | 1,000 |
| Total | $36,000 |
Using this information, prepare a budget for May stating the total amount for the May budget. Assume the budget will increase to 24,500 jars of sauce reflecting anticipated sales increase related to a new marketing campaign
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