Company expects to produce and sell12,000 units for $80 DM costs are $8 DL is $40 MOH is $12 per unit Beginning inventory Target Ending inventory Finished goods inventory 800 units 1000 units What are the 2020 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?

Question

Aisha Harding

Business

25 December, 22:27

Company expects to produce and sell12,000 units for $80 DM costs are $8 DL is $40 MOH is $12 per unit Beginning inventory Target Ending inventory Finished goods inventory 800 units 1000 units What are the 2020 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?

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Answers (1)

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Keagan Hebert · Answer 1

Answer: Budgeted Direct Materials - $96,000

Budgeted Direct Manufacturing Labour - $480,000

Budgeted MOH - $144,000

Explanation:

To calculate the budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, we will multiply their rates by the total amount of units the company expects to be produced which is 12,000 units.

Budgeted Direct Materials = Units produced * DM per unit

= 12,000 units * 8

= $ 96,000

Budgeted Direct Manufacturing Labour = Units produced * DL per unit

= 12,000 units * 40

= $ 480,000

Budgeted MOH = Units produced * MOH per unit

= 12,000 Units * 12

= $ 144,000

If you need any clarification do comment.