Question

Selwyn, Inc. has budgeted the following for January: Unit sales 20,000 Direct materials cost $68,000 Fixed...

Selwyn, Inc. has budgeted the following for January:

Unit sales 20,000
Direct materials cost $68,000
Fixed manufacturing overhead cost $35,000

Selwyn believes that unit sales will increase by 5% per month each month for the next year. Selwyn plans to continuously improve direct materials costs by 1% each month and fixed manufacturing overhead costs by 2% each month.

Prepare a Kaizen budget for direct materials and fixed manufacturing overhead costs for January, February, March, and April.

Instructions:

Round your answers to the nearest dollar.

Direct materials Fixed manufacturing overhead
January January
February    February
March March
April April


Business   Accounting   
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