Problem #3(4 points)Gildan Inc. is the main manufacturing of IPads in Australia. Their budgeted sales for the first quarter of the year 2017 are the following:MonthsIPadsBudgeted Production UnitsJanuary70 00069 000February55 00058 000March60 00057 000The company’s policy requires maintaining units on hand at the end of each month equal to 20% of next month’s budgeted unit sales and to maintain materials at the end of each month equal to 10% of the next month’s production needs. Each IPads requires 4 pounds of material and 15 minutes of direct labor to produce. Employees are paid $15 per hour. Manufacturing overhead is applied at $5.40 per direct labor hour.Required: Prepare a direct labor budget for the month of February 28 2017.Problem #4(4 points)During October Minolta Inc.’s production budget showed 4 500 units to be produced and its sales budget showed 4 800 cameras to be sold. Budgeted manufacturing costs for October appear below:Indirect labor$5.00 per cameraSupplies$6.80 per cameraFactory depreciation$36 000Factory supervisory salaries30 000Fixed factory occupancy44 000Required: Prepare a manufacturing overhead budget for October 31 2017.
