Question

First Class, Inc., expects to sell 29,000 pool cues for $13 each. Direct materials costs are $3, direct manufacturing labor is $5, and manufacturing overhead is $0.83 per pool cue. The following inventory levels apply to 2019: Beginning inventoryEnding inventory Direct materials24,000 units24,000 units Work-in-process inventory0 units0 units Finished goods inventory1,200 units2,800 units What are the 2019 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively

Answer 1

Direct material= $91,800

Direct labor= $153,000

Manufacturing overhead= $25,398

Step-by-step explanation:

Giving the following information:

Sales= 29,000 pool cues

Direct materials costs are $3

direct manufacturing labor is $5

manufacturing overhead is $0.83 per pool cue

Beginning inventory Direct materials= 24,000 units

Ending inventory Direct materials= 24,000 units

Finished goods inventory Beginning= 1,200 units

Finished goods inventory Ending= 2,800 units

First, we need to determine the number of units to be produced:

Production= sales + desired ending inventory - beginning inventory

Production= 29,000 + 2,800 - 1,200

Production= 30,600 units

Direct material= 30,600*3= $91,800

Direct labor= 30,600*5=$153,000

Manufacturing overhead= 30,600*0.83= $25,398