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Wildhorse's Salsa is in the process of preparing a production cost budget for May. Actual costs in April were:
Wildhorse's Salsa
Production Costs
April 2020
Production 25,000 Jars of Salsa
Ingredient cost (variable) $ 22,250
Labor cost (variable) 14,000
Rent (fixed) 5,000
Depreciation (fixed) 6,000
Other (fixed) 1,000
Total $ 48,250
Problem 1: Using this information, prepare a budget for May. Assume that production will increase to 30,000 jars of salsa, reflecting an anticipated sales increase related to a new marketing campaign.
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