The company is looking for feedback on performance. The company compares the budget for the year with the actual costs. Ruger had the following budgeted variable costs per unit: Direct materials - $11.00, Direct labor - $15.00, Supplies - $0.80, Indirect labor - $1.00, Power - $0.10. The budgeted fixed overhead for 2016 includes Supervision - $9,000, Depreciation - $13,000, and Rent - $12,000.
Required: Calculate the total budgeted cost for producing 6,000 units.
The following standard costs were developed for one of the products of Razzmata Corporation:
STANDARD COST CARD PER UNIT 7000M
Material - 4 feet at $14.25 per foot
Direct labor - 8 hours at $10 per hour
Variable overhead - 8 direct labor hours at $8 per hour
Fixed overhead - 8 direct labor hours at $12 per hour
Total standard cost per unit - $297.00
Units produced: 2,000
Materials purchased: 200,000
Materials used: Direct labor - 11,000 feet, Variable overhead - 52,000 feet, Fixed overhead - 40,000 feet
Manufacturing overhead incurred: $840,000
Variable overhead: $756,000
Fixed overhead: $1,000,000