Wyckam manufacturing inc. has provided the following information concerning its manufacturing costs: fixed cost per month cost per machine-hour direct materials $ 5.70 direct labor $ 42,900 supplies $ 0.10 utilities $ 1,400 $ 0.25 depreciation $ 14,900 insurance $ 11,900 for example, utilities should be $1,400 per month plus $0.25 per machine-hour. the company expects to work 4,200 machine-hours in june. note that the company’s direct labor is a fixed cost. required: prepare the company’s planning budget for june.

Explanation:

The preparation of the company’s planning budget for June is shown below:

                                  Wyckam Manufacturing Inc

                                              June month

Direct materials  (4,200 machine hours × $5.70)  $23,490

Direct labor                                                               $42,900

Supplies (4,200 machine hours × $0.10)                $420

Utilities ($1,400 + 4,200 machine hours × $0.25)  $2,450

Depreciation                                                              $14,900

Insurance                                                                  $11,900

Total Manufacturing Costs                                     $96,060

one of the appeals of a sole proprietorship is that business expenses are kept separate from your personal income tax return

answer; normative economics;