BacSac Company makes backpacks. Its production budget for two months is:
Month Budgeted production in units
June 35,000
July 50,000
The company uses two types of labour to make the backpacks: cutting labour and sewing labour. Each backpack requires 6 minutes, on average, of cutting labour. Each backpack requires 24 minutes of sewing labour.
The company has fixed manufacturing overhead of $4,400 per month and variable manufacturing overhead of $3 per direct labour hour.
Required:
A. Calculate the budgeted number of hours of cutting labour for July.
B. Calculate the budgeted number of hours of sewing labour for July.
C. Calculate the total number of budgeted direct labour hours for July.
D. Calcualte the budgeted total manufacturing overhead for the month of July.
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