Production Budgets Homework Week 3

Hale Company

Standards

Raw Materials

Pounds per unit 5

Cost per Pound $1.50

Labor

hours per unit 0.4

cost per hour $30.00

machine hours per unit 3

Overhead

Variable per unit 13.5

Utilities per unit 1.5

Inspection per unit 10

Factory Supplies per unit 2

Fixed per month $47,000.00

1 Production Budget

July August September October November

Sales 100,000.00 125,000.00 156,000.00 165,000.00 185,000.00

Desired ending Inventory 15,000.00 18,720.00 19,800.00 22,200.00 ??

Units Needed 115,000.00 143,720.00 175,800.00 187,200.00 185,000.00

Less: Beginning inventory 13,000.00 15,000.00 18,720.00 19,800.00 22,200.00

Production Needed 102,000.00 128,720.00 157,080.00 167,400.00 162,800.00

2 Material Purchases Budget

July August September October November

Production needed in units 102,000.00 128,720.00 157,080.00 167,400.00 162,800.00

raw material standard per unit 5 5 5 5 5

Production needs raw material 510,000.00 643,600.00 785,400.00 837,000.00 814,000.00

Desired ending inventory raw materials 6,436.00 7,854.00 8,370.00 8,140.00 ???

Raw materials needed 516,436.00 651,454.00 793,770.00 845,140.00 814,000.00

Less: Beginnning inventory raw materials 22,000.00 6,436.00 7,854.00 8,370.00 8,140.00

Raw Materials purchases 494,436.00 645,018.00 785,916.00 836,770.00 805,860.00

Cost per pound 1.5 1.5 1.5 1.5 1.5

Budgeted Purchases 741,654.00 967,527.00 1,178,874.00 1,255,155.00 1,208,790.00

3 Direct Labor Budget

July August September October November

Budgeted Production 102,000.00 128,720.00 157,080.00 167,400.00 162,800.00

Labor hours per unit 0.4 0.4 0.4 0.4 0.4

Total Labor Hours 40,800.00 51,488.00 62,832.00 66,960.00 65,120.00

Labor rate per hour $30.00 $30.00 $30.00 $30.00 $30.00

Total Budgeted Labor 1,224,000.00 1,544,640.00 1,884,960.00 2,008,800.00 1,953,600.00

4 Overhead Budget

July August...