Question

Mama Italiano Sauce is in the process of preparing a production cost budget for May. The...

Mama Italiano Sauce is in the process of preparing a production cost budget for May. The actual costs in April were:

Mama Italian Sauce

Production Cost Budget

April 2008

Production - Jars of sauce

20,000

Ingredient cost (variable)

$16,000

Labor cost (variable)

9,000

Rent (fixed)

4,000

Depreciation (fixed)

6,000

Other (fixed)

1,000

Total

$36,000

Using this information, prepare a budget for May stating the total amount for the May budget. Assume the budget will increase to 25,500 jars of sauce reflecting anticipated sales increase related to a new marketing campaign

Homework Answers

Answer #1
Mama Italian Sauce
Production Cost Budget
May 2018
Production - Jars of sauce 25500
Ingredient cost (variable) $         20,400
Labor cost (variable) $         11,475
Rent (fixed) $           4,000
Depreciation (fixed) $           6,000
Other (fixed) $           1,000
Total $        42,875
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