Question

Waterway Industries is planning to sell 500 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.50 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $10 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Waterway has 4100 pounds of clay mix in beginning inventory and wants to have 4900 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month?

Answer 1

$4785

Step-by-step explanation:

Estimated Production budget - 870 boxes

Hour /unit = 0.5

Total time required = (870*0.5)435 hr

Labor rate =$10/hr

Budgeted manufacturing overhead = 435 *10 *110%

=$4785