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Question - Mama Italiano Sauce is in the process of preparing a production cost budget for May. The actual costs in April were:
Mama Italian Sauce Production Cost Budget April 2008
Production - Jars of sauce 20,000
Ingredient cost (variable) $16,000
Labor cost (variable) 9,000
Rent (fixed) 4,000
Depreciation (fixed) 6,000
Other (fixed) 1,000
Total $36,000
Using this information, prepare a budget for May stating the total amount for the May budget. Assume the budget will increase to 25,000 jars of sauce reflecting anticipated sales increase related to a new marketing campaign.
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