Wyckam Manufacturing Inc. has provided the following information concerning its manufacturing costs:Fixed Cost Cost perper Month Machine-HourDirect materials ............................ $4.25Direct labor ................................... $36,800Supplies ........................................ $0.30Utilities .......................................... $1,400 $0.05Depreciation ................................. $16,700Insurance ...................................... $12,700For example, utilities should be $1,400 per month plus $0.05 per machine-hour. The company expects towork 5,000 machine-hours in June. Note that the company’s direct labor is a fixed cost.Required:Prepare the company’s planning budget for manufacturing costs for June.
Wyckam Manufacturing Inc. has provided the following information concerning its
Fixed Cost Cost per
per Month Machine-Hour
Direct materials ............................ $4.25
Direct labor ................................... $36,800
Supplies ........................................ $0.30
Utilities .......................................... $1,400 $0.05
Depreciation ................................. $16,700
Insurance ...................................... $12,700
For example, utilities should be $1,400 per month plus $0.05 per machine-hour. The company expects to
work 5,000 machine-hours in June. Note that the company’s direct labor is a fixed cost.
Required:
Prepare the company’s planning budget for manufacturing costs for June.
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