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Kolinchak Enterprises has the following production planned for the first quarter of next year:

  • January    50,000
  • February   45,000
  • March      55,000

Each unit requires 3 hours of direct labor time at $10 per hour. Unit-related overhead is $12 per machine hour and each unit requires 1/2 machine hour. Batch-related overhead is $3,000 per batch with a batch-size of 1,000 units. Facility overhead, including depreciation of $17,000, is $59,000 per month. Prepare the direct labor and manufacturing overhead budget for January.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9958669

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