MCO Leather Goods manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hours at a rate of $14 per hour. Variable manufacturing overhead is charged at a rate of $2 per direct labor hour. Fixed manufacturing overhead is $17,000 per month. The company’s policy is to end each month with direct materials inventory equal to 30% of the next month’s materials requirement. At the end of August the company had 2,680 pounds of direct materials in inventory. The company’s production budget reports the following. Production Budget September October November Units to be produced 4,700 6,200 6,400 (1) Prepare direct materials budgets for September and October. (2) Prepare direct labor budgets for September and October. (3) Prepare factory overhead budgets for September and October.

                                                       September              October

1)Direct Material budget                 $31,320                  $37,560

2)Direct Labor Budget                     $46,060                $60,760

3)Factory Overhead cost                $23,580                 $25,680

Explanation:

Material :

production (4,700*2) (6200*2)         9,400                  12,400            

+Closing( production *30%)              3,720                    3,840

-Opening                                           2,680                   3,720

=Purchases                                        10,440                  12,520

* $3 cost per pound

cost of material                                $31,320                  $37,560

Labor :

Production                                       4,700                       6,200

* hours per unit                                  0.7                           0.7

Total hours                                     3,290                       4,340

* Cost per hour                                 $14                        $14

Total Cost                                       $46,060                $60,760

Factory overhead cost:

Variable cost

Hours worked                                 3,290                       4,340

* rate                                                  $2                            $2

Variable cost                                 $6,580                      $8,680

Fixed costs                                   $17,000                       $17,000

Total Factory Overhead             $23,580                      $25,680

probably not? : o

unless you work at a circus or any other job like that. c:

maybe..

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3