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Blittle5 Blittle5
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A week ago
Percy's Pickled Snacks produces several types of pickled vegetables. The company budgets for each quarter in the last month of the previous quarter. In early March, Percy is preparing the budget for pickled beets. Budgeted sales are 12,000 jars for April, 16,000 jars for May, and 19,000 jars for June. Each jar requires 1.2 pounds of beets. The pickling process takes 60 minutes for 20 jars. Because pressurized cooking is used, the processing is monitored by an employee at all times. Each jar of pickled beets sells for $15.00. Percy requires ending Finished Goods inventory equal to 25% of the following month's sales. Other information is as follows:

Standard direct labor rate$  12.00 ​per hour
Manufacturing overhead rate45.00 ​per direct labor hour
Price of beets6.00 ​per pound
Price of jars, 100-lot150.00​per lot
What is Percy's overhead budget for April?

▸ $20,250

▸ $29,250

▸ $36,000

▸ $27,000
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Managerial Accounting

Managerial Accounting


Edition: 4th
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SagxarSagxar
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$29,250

Production: 12,000 + [(16,000 - 12,000) × 25%] = 13,000 ÷ 20 = 650 hours; 650 hours × $45 per DLH = $29,250
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