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Mama Italiano Sauce is in the process of preparing a production cost budget for May. The actual costs in April were:
Mama Italian SauceProduction Cost BudgetApril 2008
Production - Jars of sauce 20,000Ingredient cost (variable) $16,000Labor cost (variable) 9,000Rent (fixed) 4,000Depreciation (fixed) 6,000Other (fixed) 1,000Total $36,000
Problem 1: Using this information, prepare a budget for May stating the total amount for the May budget. Assume the budget will increase to 25,000 jars of sauce reflecting anticipated sales increase related to a new marketing campaign
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