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Rodgers manufactures two products A and B.The firm predicts a sales volume of 10,000 units for product A and ending finished goods inventory of 2000 units.These numbers for product B are 12000 and 3000 respectively. Rodgers currently has 7000 units of A in inventory and 9000 units of B
the following raw material are required to manufacture these products
Raw material cost per pound A B
x $2.00 2 pounds
y $2.50 1 pounds 1 pound
z $1.25 3 pound
Product a requires three hours of cutting time and two hours of finishing time: B requires one hour and three hours receptively. The direct labor rate for cutting is $ 10 per hour and $ 18 per hour for finishing.
Required
1. Prepare a production budget in units
2.Prepare a materials usage budget in pounds and dollars
3.Prepare a direct labor budget in hours and dollars for product A
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