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Saved MM Co. predicts sales of $50,000 for May. MM Co. pays a sales manager...

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Accounting

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Saved MM Co. predicts sales of $50,000 for May. MM Co. pays a sales manager a monthly salary of $4,600 plus a commission of 5% of sales dollars. MM's production manager recently found a way to reduce the amount of packaging MM uses. As a result, MM's product will receive better placement on store shelves and thus May sales are predicted to increase by 6%. In addition, MM's shipping costs are predicted to decrease from 4% of sales to 3% of sales. Compute (1) budgeted sales and (2) budgeted selling expenses for May assuming MM switches to this more sustainable packaging. (1) (2) Budgeted sales Budgeted selling expenses The production budget for Manner Company shows units to be produced as follows: July, 700: August, 760; and September, 620. Each unit produced requires two hours of direct labor. The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September Prepare a direct labor budget for the months July, August, and September MANNER COMPANY Direct Labor Budget For July, August, and September July August 700 760 Budgeted production (units) September 620 units Total labor hours needed Budgeted direct labor cost

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