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Question - Manufacturing Cost Budget

Hunstville Products produces a product with the following standard costs:

Unit Costs



Direct Materials:



Wood: 20 square feet at $3

$60


Hardware kits (screws, etc)

2

$62

Direct labor 0.5 hours at $26 per hour


13

Variable overhead, per unit


5

Total variable costs per unit


$80

Fixed costs per month (rent, utilities, supervision)


$50,000

Management plans to product 8,000 units in April 2010.

Question: Prepare a manufacturing cost budget for April 2010.

Accounting Basics, Accounting

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