Wyckam Manufacturing Inc. has provided the following information concerning its manufacturing costs:
| Fixed Cost per Month | Cost per Machine-Hour | ||||
| Direct materials | $ | 5.60 | |||
| Direct labor | $ | 42,400 | |||
| Supplies | $ | 0.30 | |||
| Utilities | $ | 2,000 | $ | 0.25 | |
| Depreciation | $ | 14,900 | |||
| Insurance | $ | 11,900 | |||
For example, utilities should be $2,000 per month plus $0.25 per machine-hour. The company expects to work 4,300 machine-hours in June. Note that the company’s direct labor is a fixed cost.
Required:
Prepare the company’s planning budget for June.
Thank you!
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