EC 4 Q3 Foster Enterprises makes custom-order draperies. In late 2013, when managers prepared the budget for 2014, they estimated that manufacturing overhead would total $113,750. Because the production process is labor intensive, overhead is allocated to jobs based on direct labor hours. Managers expected total direct labor hours to amount to 455,000 hours. During March and April of 2014, employees worked on only three jobs. Relevant information for each job follows: Monthly Data Recorded Job 76 Job 77 Job 78 March Direct materials cost $13,169 _ _ Direct labor cost $36,160 _ _ Direct labor hours 3,815 _ _ April Direct materials cost $0 $10,883 $6,370 Direct labor cost $9,947 $22,929 $2,846 Direct labor hours 1,083 2,594 405 Job 76 was started in March, finished in April, and delivered to the customer in the same month. Job 77 was started in April, finished in April, and delivered to the customer in May. Job 78 was started in April and finished in May.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
EC 4 Q3
Foster Enterprises makes custom-order draperies. In late 2013, when managers prepared the budget for 2014, they estimated that manufacturing overhead would total $113,750. Because the production process is labor intensive, overhead is allocated to jobs based on direct labor hours. Managers expected total direct labor hours to amount to 455,000 hours.
During March and April of 2014, employees worked on only three jobs. Relevant information for each job follows:
| Monthly Data Recorded | Job 76 | Job 77 | Job 78 | |||||||
| March | ||||||||||
| Direct materials cost | $13,169 | _ | _ | |||||||
| Direct labor cost | $36,160 | _ | _ | |||||||
| Direct labor hours | 3,815 | _ | _ | |||||||
| April | ||||||||||
| Direct materials cost | $0 | $10,883 | $6,370 | |||||||
| Direct labor cost | $9,947 | $22,929 | $2,846 | |||||||
| Direct labor hours | 1,083 | 2,594 | 405 |
Job 76 was started in March, finished in April, and delivered to the customer in the same month. Job 77 was started in April, finished in April, and delivered to the customer in May. Job 78 was started in April and finished in May.
What was cost of goods manufactured for April? (Round overhead applied and final answer to the nearest whole dollar, e.g. 5,275.)
| Cost of goods manufactured | $ |
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