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Direct Labor Budget Direct materials used in production: Direct Materials required to produce one Backyard Chef...

  1. Direct Labor Budget
  2. Direct materials used in production:

Direct Materials required to produce one Backyard Chef Grill:

Grates                                                                                                                                  3 units per unit of product

Stainless steel                                                                                                                 24 lbs. per unit of product

Burner subassemblies                                                                                              2 units per unit of product

Shelves                                                                                                                                4 units per unit of product

Direct Materials required to produce one Master Chef grill:

Grates                                                                                                                                  6 units per unit of product

Stainless steel                                                                                                                 42 lbs. per unit of product

Burner subassemblies                                                                                              4 units per unit of product

Shelves                                                                                                                                5 units per unit of product

Anticipated purchase price for direct materials:

Grates                                                                                                                                  $16 per unit

Stainless steel                                                                                                                 $5 per lb.

Burner subassemblies                                                                                                $125 per unit

Shelves                                                                                                                                $8 per unit

Because of their excellent relationships with the vendors, they pay the following percentages when placing their order:

Grates: 10%

Stainless Steel: 25%

Burner subassemblies 5%

Shelves 2%, if pay the entire balance within 35 days.

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