SPECIAL ASSIGNMENT X +
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SPECIAL ASSIGNMENT 4-CLASS #25367-SPRING 2019
Samuel & Silas, LLC has put together the following data in order to complete their operating budget for the
second quarter in 2019:
Sales (units)
April
May
June
July
76,860
72,345
68,670
70,665
Additional information:
Company policy requires 60% of next month's sales (in units) be in ending inventory. This policy was met in
March.
It takes 2.5 hours of direct labor to produce one unit.
The average wage cost is $14.
Variable overhead rate is $6 per direct labor hour and fixed overhead is $15,000 per month.
Required:
A. Prepare a production budget for April, May, June and the quarter in total.
B. Prepare a direct labor budget for April, May, June and the quarter in total.
C. Prepare an overhead budget for April, May, June and the quarter in total.