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Wyckam Manufacturing Incorporated provided the following cost formulas for its manufacturing costs:

\begin{tabular}{|c|c|c|}
\hline & \begin{tabular}{l}
Fixed \\
Cost per \\
Month
\end{tabular} & \begin{tabular}{l}
Cost per \\
Machine- \\
Hour
\end{tabular} \\
\hline Direct materials & & \[tex]$5.30 \\
\hline Direct labor & \$[/tex]42,000 & \\
\hline Supplies & & \[tex]$0.10 \\
\hline Utilities & \$[/tex]1,400 & \[tex]$0.10 \\
\hline Depreciation & \$[/tex]15,000 & \\
\hline Insurance & \[tex]$11,900 & \\
\hline
\end{tabular}

For example, utilities should be \$[/tex]1,400 per month plus \$0.10 per machine-hour. The company expects to work 4,500 machine-hours in June.

Required:
Prepare the company's planning budget for June.

\begin{tabular}{|l|l|}
\hline \multicolumn{1}{|c|}{ Wyckam Manufacturing Incorporated } \\
\hline \multicolumn{1}{|c|}{ Planning Budget for Manufacturing Costs } \\
\hline \multicolumn{2}{|c|}{ For the Month Ended June 30 } \\
\hline & \\
\hline Direct materials & \\
\hline Direct labor & \\
\hline Supplies & \\
\hline Utilities & \\
\hline Depreciation & \\
\hline Insurance & \\
\hline Total manufacturing cost & \\
\hline
\end{tabular}



Answer :

GinnyAnswer
Sure, let's prepare Wyckam Manufacturing Incorporated's planning budget for manufacturing costs for the month of June step-by-step.

First, let's break down each cost and their respective calculations based on the provided information:

1. Direct Materials:
- Cost per machine-hour is [tex]$5.30. - Given 4500 machine hours. - Direct materials cost = 4500 machine-hours * $[/tex]5.30 per machine-hour
- Direct materials cost: [tex]$23,850.0 2. Direct Labor: - Fixed cost per month is $[/tex]42,000.
- Direct labor cost: [tex]$42,000 3. Supplies: - Cost per machine-hour is $[/tex]0.10.
- Given 4500 machine hours.
- Supplies cost = 4500 machine-hours * [tex]$0.10 per machine-hour - Supplies cost: $[/tex]450.0

4. Utilities:
- Fixed cost per month is [tex]$1,400. - Cost per machine-hour is $[/tex]0.10.
- Given 4500 machine hours.
- Utilities variable cost = 4500 machine-hours * [tex]$0.10 per machine-hour = $[/tex]450
- Total utilities cost = Fixed cost of [tex]$1,400 + Variable cost of $[/tex]450
- Utilities cost: [tex]$1,850.0 5. Depreciation: - Fixed cost per month is $[/tex]15,000.
- Depreciation cost: [tex]$15,000 6. Insurance: - Fixed cost per month is $[/tex]11,900.
- Insurance cost: [tex]$11,900 Finally, let's calculate the Total Manufacturing Cost by summing up all the individual costs: - Total Manufacturing Cost = Direct materials cost + Direct labor cost + Supplies cost + Utilities cost + Depreciation cost + Insurance cost - Total Manufacturing Cost = $[/tex]23,850.0 + [tex]$42,000 + $[/tex]450.0 + [tex]$1,850.0 + $[/tex]15,000 + [tex]$11,900 - Total Manufacturing Cost: $[/tex]95,050.0

Here's the budget laid out in a tabular format:

### Wyckam Manufacturing Incorporated
#### Planning Budget for Manufacturing Costs
#### For the Month Ended June 30

| | Amount |
| --- | ---: |
| Direct materials | [tex]$23,850.0 | | Direct labor | $[/tex]42,000 |
| Supplies | [tex]$450.0 | | Utilities | $[/tex]1,850.0 |
| Depreciation | [tex]$15,000 | | Insurance | $[/tex]11,900 |
| Total Manufacturing Cost | $95,050.0 |

This detailed step-by-step solution provides the complete planning budget for Wyckam Manufacturing Incorporated for the month of June.

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