JB 50 JB 60 An assistant has prepared the detailed manufacturing overhead budget
ID: 2433460 • Letter: J
Question
JB 50
JB 60
An assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $660,000 for product JB 50 and $360,000 for product JB 60, and administrative expenses of $540,000 for product JB 50 and $340,000 for product JB 60. Income taxes are expected to be 30%.
Complete the following budgets for the year. (List operating expenses from largest to smallest eg 10, 5, 3, 2.)
For the Year Ending December 31, 2009
JB 50
JB 60
Total
× $
× $
$
$
$
Product ProductJB 50
JB 60
Sales budget: Anticipated volume in units 400,000 200,000 Unit selling price $20 $25 Production budget: Desired ending finished goods units 25,000 15,000 Beginning finished goods units 30,000 10,000 Direct materials budget: Direct materials per unit (pounds) 2 3 Desired ending direct materials pounds 30,000 15,000 Beginning direct materials pounds 40,000 10,000 Cost per pound $3 $4 Direct labor budget: Direct labor time per unit 0.4 0.6 Direct labor rate per hour $12 $12 Budgeted income statement: Total unit cost $12 $21