RECOMMENDED!!ACCT100-Babcock’s most popular cabinet is a small cherry
The company’s production budget for the first seven months of the year is as follows:MonthUnitsJanuary10,000February17,000March13,000April18,500May22,100June24,300July26,200Babcock’s most popular cabinet is a small cherry wood cabinet typically used in bathrooms. Each completed unit requires 3.5 hours of direct labor, and the skilled labor costs an average of $25 per hour. The company applies overhead at the rate of $3 per direct labor hour.A. Needed: a direct labor budget for January through June.B. Needed: a manufacturing overhead budget for the same period.
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