Reference no: EM132811526
Question - Bacon Industries manufactures two products: A and B. The company predicts a sales volume of 10,000 units for product A and ending finished-goods inventory of 2,000 units. These numbers for product B are 12,000 and 3,000, respectively. Bacon currently has 7,000 units of A in inventory and 9,000 units of B.
The following raw materials are required to manufacture these products:
Raw Material Cost per Pound Required for Product A Required for Product B X $2.00 2 pounds Y 2.50 1 pound 1 pound Z 1.25 3 pounds.
Product A requires three hours of cutting time and two hours of finishing time; B requires one hour and three hours, respectively. The direct labor rate for cutting is $10 per hour and $18 per hour for finishing.
Required -
A. Prepare production budget in units for products A and B.
B. Prepare materials usage budget in pounds and dollars for materials X, Y, and Z.
C. Prepare direct labor budget in hours and dollars for product A.
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