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What is Budgeting for Blue Rug Production about?

1. Xander manufactures blue rugs using wool and dye as direct materials. It budgets to use 7.2 million skeins of wool and 160,000 gallons of dye to produce 200,000 rugs. 2. Xander calculates budgeted overhead rates of $2.55 per direct labor hour for weaving and $12 per machine hour for dyeing. 3. The budgeted unit cost of a blue rug is $1,127.30. Total revenues are budgeted at $400 million if 200,000 rugs are sold and $370 million if 185,000 rugs are sold.

Author

Tayyaba Khalid

Language

EN