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    Creating a budget for Mama Italiano Sauce

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    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

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    https://brainmass.com/economics/finance/creating-a-budget-for-mama-italiano-sauce-575903

    Solution Preview

    To determine the variable costs for May, divide Ingredient Cost and Labor Cost by 20,000 and multiply by ...

    Solution Summary

    This solution shows how to prepare a budget for a firm that expects its sales to increase next month because of a new marketing campaign.

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