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Wyckam Manufacturing Inc. has provided the following information concerning its manufacturing costs: Fixed Cost per Month Cost per Machine-Hour Direct materials $ 5.70 Direct labor $ 42,900 Supplies $ 0.10 Utilities $ 1,400 $ 0.25 Depreciation $ 14,900 Insurance $ 11,900 For example, utilities should be $1,400 per month plus $0.25 per machine-hour. The company expects to work 4,200 machine-hours in June. Note that the company’s direct labor is a fixed cost. Required: Prepare the company’s planning budget for June.

Respuesta :

Answer:

Explanation:

The preparation of the company’s planning budget for June is shown below:

                                  Wyckam Manufacturing Inc

                                              June month

Direct materials  (4,200 machine hours × $5.70)  $23,490

Direct labor                                                               $42,900

Supplies (4,200 machine hours × $0.10)                $420

Utilities ($1,400 + 4,200 machine hours × $0.25)  $2,450

Depreciation                                                              $14,900

Insurance                                                                  $11,900

Total Manufacturing Costs                                     $96,060

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