Homework Help is Here – Start Your Trial Now!
Business
Accounting
Years Budgeted unit sales Stock at the end Total needs 2023 4000 1000 5000 Stock at the beginning 800 Required production in units 4200 2024 5000 1200 6200 1000 5200 2025 6000 1400 1200 2026 6200 7000 7400 8600 1600 1400 7200 2027 Total 8000 30,000 1800 1800 9800 31,800 1600 8200 800 31,000

Years Budgeted unit sales Stock at the end Total needs 2023 4000 1000 5000 Stock at the beginning 800 Required production in units 4200 2024 5000 1200 6200 1000 5200 2025 6000 1400 1200 2026 6200 7000 7400 8600 1600 1400 7200 2027 Total 8000 30,000 1800 1800 9800 31,800 1600 8200 800 31,000

Corporate Fin Focused Approach
Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter2: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
Problem 14SP
See similar textbooks
icon
Related questions
Question

Prepare a direct labor budget for each of the upcoming five years.

Cost labor per unit = $8

 

 

Total direct labor hours needed for a period = Number of units to be produced in that period * Direct labors hours needed per unit

Total direct labor costs needed to meet production =Total direct labor hours needed for that period * Direct labor cost per hour

Years Budgeted unit sales Stock at the end Total needs Stock at the beginning Required production in units 2023 4000 1000 5000 800 4200 2024 5000 1200 6200 1000 5200 2025 6000 1400 7400 1200 6200 2026 7000 1600 8600 1400 7200 2027 Total 8000 1800 9800 1600 8200 30,000 1800 31,800 800 31,000
Transcribed Image Text:Years Budgeted unit sales Stock at the end Total needs Stock at the beginning Required production in units 2023 4000 1000 5000 800 4200 2024 5000 1200 6200 1000 5200 2025 6000 1400 7400 1200 6200 2026 7000 1600 8600 1400 7200 2027 Total 8000 1800 9800 1600 8200 30,000 1800 31,800 800 31,000
Years Sales Volume: Revenues ($100) Variable Costs ($60)) Contribution Margin Fixed Costs Operating Income 2023 4000 400,000 240,000 $120,000 2024 $40,000 5000 500,000 300,000 2025 $0 6000 $160,000 $200,000 $240,000 600,000 360,000 $0 $200,000 $240,000 2026 7000 700,000 420,000 $0 2027 $280,000 8000 800,000 $280,000 $320,000 480,000 $0 $320,000
Transcribed Image Text:Years Sales Volume: Revenues ($100) Variable Costs ($60)) Contribution Margin Fixed Costs Operating Income 2023 4000 400,000 240,000 $120,000 2024 $40,000 5000 500,000 300,000 2025 $0 6000 $160,000 $200,000 $240,000 600,000 360,000 $0 $200,000 $240,000 2026 7000 700,000 420,000 $0 2027 $280,000 8000 800,000 $280,000 $320,000 480,000 $0 $320,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage
SEE MORE TEXTBOOKS