Bradford, Inc., expects to sell 9,000 ceramic vases for $21 each. Direct materials costs are $3, direct manufacturing labor is $12, and manufacturing overhead is $3 per vase. The following inventory levels apply to 2019:

What are the 2019 budgeted production costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?

Question

Bradford, Inc., expects to sell 9,000 ceramic vases for $21 each. Direct materials costs are $3, direct manufacturing labor is $12, and manufacturing overhead is $3 per vase. The following inventory levels apply to 2019:

What are the 2019 budgeted production costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?

Quizplus · Accepted Answer

Budgeted cost for direct materials = $27,600 [9,200 units × $3].
Budgeted cost for direct manufacturing labor = $110,400 [9,200 units × $12].
Budgeted manufacturing overhead = $27,600 [9,200 × $3].