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Mama Italiano Sauce is in the process of preparing a production cost budget for May. The actual costs in April were:

Mama Italian Sauce
Production Cost Budget
April 2008
Production - Jars of sauce 20,000
Ingredient cost (variable) $16,000
Labor cost (variable) 9,000
Rent (fixed) 4,000
Depreciation (fixed) 6,000
Other (fixed) 1,000
Total $36,000

Using this information, prepare a budget for May stating the total amount for the May budget. Assume the budget will increase to 24,500 jars of sauce reflecting anticipated sales increase related to a new marketing campaign.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92748735

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