50.1K

Verified Solution

Link Copied!

Required information Ramos Co. provides the following sales forecast and production budget for the next four months. Sales (units) Budgeted production (units) April 630 570 May 710 700 June 660 670 July 730 670 The company plans for finished goods inventory of 250 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 20% of next month's production needs. Beginning direct materials inventory for April was 570 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.40 hours of direct labor at the rate of $12 per hour. The company budgets variable overhead at the rate of $16 per direct labor hour and budgets fixed overhead of $9,300 per month 1. Prepare a direct labor budget for April, May, and June. 2. Prepare a factory overhead budget for April, May, and June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a direct labor budget for April, May, and June. (Enter your direct labor hours (hrs.) per unit in two decimal places.) RAMOS CO. Direct Labor Budget For April, May, and June April May 570 700 June Budgeted production (units) 670 units 5 Total labor hours needed Budgeted direct labor cost Required Required 2 > Complete this question by entering your answers in the tabs below. XXX Required 1 Recuired 2 Prepare a factory overhead budget for April, May, and June. RAMOS CO. Factory Overhead Budget For April May, and June April May June Total labor hours needed Budgeted variable overhead Budgeted fixed overhead Total budgeted factory overhead

Answer & Explanation Solved by verified expert

See Answer