shows the expected manufacturing overhead costs for the budget period 638021

Aug 30, 2021 | Uncategorized

Direct labor hours are determined from the production budget. At Hayes Company, two hours of direct labor are required to produce each unit of finished goods. The anticipated hourly wage rate is $10.

HAYES COMPANY Sales Budget For the Year Ending December 31,2011

 

Quarter

 

 

1

2

3

4

Year

Units to be produced

3,100

3,600

4,100

4,600

15,000

Direct labor time(hours) per unit

×2

×2

×2

×2

×$60

Total required direct labor hours

6,200

7,200

8,200

9,200

 

Direct labor cost per hour

×$10

×$10

×$10

×$10

 

Shows the expected manufacturing overhead costs for the budget period.

Distinguishes between fixed and variable overhead costs.