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  3. q 3) fbb company produces and sells a single produ

Q 3) FBB Company produces and sells a single product with standard costs as follows:...

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Accounting

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Q 3) FBB Company produces and sells a single product with standard costs as follows: Resource Direct materials Direct labour Variable overhead Fixed overhead Total Unit Cost Standard Inputs 2 kgs 3 hours 3 hours 3 hours Cost per Input $4.00 6.00 9.00 10.00 Cost per Unit $8.00 18.00 27.00 30.00 $83.00 Overhead rates are based on 2.000 units per month or 6,000 standard direct labor hours. Overhead is applied on the basis of direct labor hours. Desired ending inventories of materials and finished goods are based on 5% of next periods needs. Unit Sales are budgeted as follows: January 2,000 February 2,000 March 2,100 April 1,900 May 1.800 The budgeted sales price is $160 per unit. All sales are budgeted as credit sales. You are required to prepare the following budgets for March: a. Sales budget for March, (2 marks) b. Production Budget, i.e., units to be produced for March. (2 marks) c. Material Usage Budget (Direct Material quantity needed for production for March) (2 marks) d. Materials Purchase Budget for March. (2 marks) e. Manpower Budget for March. Labour work for 8 hours a day and 25 days a week. (2 marks)

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