The standard direct labor rate will increase $0.25 per hour over the
2005 rate.
Additional information regarding employee benefits is included in the
section on manufacturing overhead.
2006 OVERHEAD BUDGET INFORMATION
The following information is available regarding the actual overhead
costs incurred for 2005:
2006 SALES DEPARTMENT INFORMATION
The sales department consists of 10 representatives who report
directly to the president. Each individual is on a base salary plus a
commission, and the sales reps also submit meal and entertainment
expenses for reimbursement. (In 2005, the meal and entertainment
expenses were limited to $50 per week per sales representative based
upon a 52 week year.)
The following information is available regarding the actual selling
costs incurred for 2005:
No change
2006 ADMINISTRATIVE BUDGET INFORMATION
The administrative department consists of the president and an office
staff of eight who handle the secretarial, purchasing, and accounting
duties. (Total of nine people.) The following information is available
regarding the 2005 actual costs:
It is felt that the level of the office and administrative staff will be
adequate for the coming year. It is expected that the
following changes will occur in 2006: