Question

Wyckam Manufacturing Inc. has provided the following information concerning its manufacturing costs:

Fixed Cost per Month Cost per Machine-Hour
Direct materials $ 5.40
Direct labor $ 42,400
Supplies $ 0.30
Utilities $ 1,700 $ 0.25
Depreciation $ 15,200
Insurance $ 11,600
For example, utilities should be $1,700 per month plus $0.25 per machine-hour. The company expects to work 4,200 machine-hours in June. Note that the company’s direct labor is a fixed cost.
Required:
Prepare the company's planning budget for manufacturing costs for June.

Answer 1

Total Manufacturing Costs is $95,680

Step-by-step explanation:

Wyckam Manufacturing Inc.

Planning Budget for Manufacturing costs

For the month Ended June 30

Direct Materials (4,200 hours *$5.40) $22,680

Direct Labor Fixed $42,400

Supplies (4,200 hours * $0.25 ) $1,050

Utilities ($1,700+ 4,200 Hours * $0.25) $2,750

Depreciation Fixed $15,200

Insurance Fixed $11,600

Total Manufacturing Costs $95,680