Direct labor budget. Manufacturing overhead budget. Selling and administrative expenses budget. Budgeted income statement. Budgeted balance sheet.
All sales are on account.
The company desires to have materials on hand at the end of each month equal to 10 percent of the following month s production needs. The beginning materials inventory was 13,000 pounds. No discount terms are available for early payment. Each unit produced requires 0.05 hour of direct labor. Royal fully adjusts its direct labor workforce to the workload each month.