Vaughn Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022: Estimated unit sales Sales price per unit Direct labour hours per unit Direct labour cost per hour January 11,000 $53.00 2.00 $8.00 February March April 13,000 7,000 $50.40 $50.40 2.00 $8.00 1.50 $8.00 10.000 May 8.000 $50.40 $50.40 1.50 1.50 $9.00 $9.00 Vaughn has a labour contract that calls for a wage increase to $9.00 per hour on April 1. It has installed new labour-saving machinery, which will be fully operational by March 1. Vaughn expects to begin the year with 17,500 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 50% of the next month's sales. (a) Prepare a production budget and a direct labour budget for Vaughn by month and for the first quarter of the year. The direct labour budget should include direct labour hours and show the detail for each direct labour cost category. (Round DLH per unit and labor rate per hour to 2 decimal places, e.g. 12.25 and all other answers to O decimal places, e.g. 125.)

Vaughn Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022: Estimated unit sales Sales price per unit Direct labour hours per unit Direct labour cost per hour January 11,000 $53.00 2.00 $8.00 February March April 13,000 7,000 $50.40 $50.40 2.00 $8.00 1.50 $8.00 10.000 May 8.000 $50.40 $50.40 1.50 1.50 $9.00 $9.00 Vaughn has a labour contract that calls for a wage increase to $9.00 per hour on April 1. It has installed new labour-saving machinery, which will be fully operational by March 1. Vaughn expects to begin the year with 17,500 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 50% of the next month's sales. (a) Prepare a production budget and a direct labour budget for Vaughn by month and for the first quarter of the year. The direct labour budget should include direct labour hours and show the detail for each direct labour cost category. (Round DLH per unit and labor rate per hour to 2 decimal places, e.g. 12.25 and all other answers to O decimal places, e.g. 125.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 3PB: TIB makes custom guitars and prepared the following sales budget for the second quarter It also has...

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