Deleon Inc. is preparing its annual budgets for the year ending December 31, 2014. Accounting assistants furnish the data shown below. | | | Product JB 50 | | Product JB 60 | Sales budget: | | | | | | | Anticipated volume in units | | 401,300 | | | 200,000 | | Unit selling price | | $18.00 | | | $23.00 | | Production budget: | | | | | | | Desired ending finished goods units | | 26,300 | | | 16,700 | | Beginning finished goods units | | 34,900 | | | 12,500 | | Direct materials budget: | | | | | | | Direct materials per unit (pounds) | | 3 | | | 4 | | Desired ending direct materials pounds | | 27,800 | | | 18,000 | | Beginning direct materials pounds | | 39,300 | | | 12,500 | | Cost per pound | | $2 | | | $3 | | Direct labor budget: | | | | | | | Direct labor time per unit | | 0.3 | | | 0.6 | | Direct labor rate per hour | | $10 | | | $10 | | Budgeted income statement: | | | | | | | Total unit cost | | $10 | | | $19 | |
An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $657,400 for product JB 50 and $356,900 for product JB 60, and administrative expenses of $535,100 for product JB 50 and $335,700 for product JB 60. Income taxes are expected to be 20%.
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