Deep Valley Foods manufactures a product that is first smoked and then packed for shipment to customers. During a normal n the product's direct labor cost per pound is budgeted using the following information. Direct Budgeted Direct Labor Hours Labor Cost (per (per hour) pound) Process: Smoking Packing 0.08 $20 0.06 12 The budget for March calls for the production of 500,000 pounds of product. However, March's direct labor costs for smoking expected to be 5 percent above normal due to anticipated scheduling inefficiencies. Yet direct labor costs in the packing room expected to be 4 percent below normal because of changes in equipment layout. Prepare a budget for direct labor costs in March using three column headings: Total, Smoking, and Packing. DEEP VALLEY FOODS Budget for Direct Labor Costs For the Month Ended March 31st Total Smoking Packing Smoking Packing Totals

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 14P: Fargo Co. manufactures products in batches of 100 units per batch. The company uses a standard cost...
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Deep Valley Foods manufactures a product that is first smoked and then packed for shipment to customers. During a normal month
the product's direct labor cost per pound is budgeted using the following information.
Direct
Budgeted
Labor
Direct
Hours
Labor Cost
(per
pound)
(per hour)
Process:
Smoking
Packing
0.08
$20
0.06
12
The budget for March calls for the production of 500,000 pounds of product. However, March's direct labor costs for smoking are
expected to be 5 percent above normal due to anticipated scheduling inefficiencies. Yet direct labor costs in the packing room are
expected to be 4 percent below normal because of changes in equipment layout.
Prepare a budget for direct labor costs in March using three column headings: Total, Smoking, and Packing.
DEEP VALLEY FOODS
Budget for Direct Labor Costs
For the Month Ended March 31st
Total
Smoking
Packing
Smoking
Packing
Totals
Transcribed Image Text:Deep Valley Foods manufactures a product that is first smoked and then packed for shipment to customers. During a normal month the product's direct labor cost per pound is budgeted using the following information. Direct Budgeted Labor Direct Hours Labor Cost (per pound) (per hour) Process: Smoking Packing 0.08 $20 0.06 12 The budget for March calls for the production of 500,000 pounds of product. However, March's direct labor costs for smoking are expected to be 5 percent above normal due to anticipated scheduling inefficiencies. Yet direct labor costs in the packing room are expected to be 4 percent below normal because of changes in equipment layout. Prepare a budget for direct labor costs in March using three column headings: Total, Smoking, and Packing. DEEP VALLEY FOODS Budget for Direct Labor Costs For the Month Ended March 31st Total Smoking Packing Smoking Packing Totals
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