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Bamboo You, Inc. This company manufactures bamboo picture frames that sell for $23 each. Each frame requires 4 linear feet of bamboo, which costs $1.50 per foot. Each frame takes approximately 18 minutes to build, and the labor rate averages $9.00 per hour.
Variable manufacturing overhead is incurred at a rate of $.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for an expected production of 3,972 units for the year. Selling and administrative expenses are estimated at $670 per month plus $.60 per unit sold.
Calculate the budgeted sales revenue for Bamboo You, Inc., for the second quarter (April, May, and June). Include each month as well as the quarter 2.
Calculate the production budget for Bamboo You, Inc., for the second quarter (April, May, and June). Include each month as well as the quarter 2.
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