solution

LEE company is doing the budget for month November 2021.The following data are provided. The company manufactures tables for schools: Sales in units 750 Budgeted manufacturing overhead $45000 Budgeted activity [machine hours] 6800 hours Desired Ending Inventory 180 units Beginning Inventory (production) 140 units Hourly Rate for Direct Labour $12.20 Direct hours used in production 700 ; Machine hours for actual production 800 For each television produced, they need 5 square feet of wood and metal that cost $24.50 per square foot. The company started the month with 105 tables in stock and it has decided to keep 200 Tables as ending inventory The company uses 4 hours of direct labour to make one Tables. The company uses machine hours as the cost driver to allocate manufacturing overhead At the end of production it charges 38% margin over the unit cost REQUIRED 1. Make a production budget in units 2. What are the reasons of making budgets ? 3. Prepare a budget for the raw materials needed 4. Prepare a direct labour budget for the month 5. Allocate cost to manufacturing overhead using machine hours as the activity (company uses Plant wide Predetermined Rate ] 6. What is the budgeted total product cost? Calculate the unit cost. 7. Using the margin provided, make a sales budget for the month