Question

yurul, Managerial Accounting, se Help System Announcements CALCULATOR PRINTER VERSION BACK Problem 9-2A (Part Level Submission) (Video) Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below. Product Product JB 50 JB 60 Sales budget: Anticipated volume in units 401,100 202,100 Unit selling price $23 $27 Production budget Desired ending finished Soods units 26,100 19,800 Beginning finished goods units 31,800 14,200 Direct materials budget: Direct materials per unit (pounds) Desired ending direct materiais pounds 33,800 18,000 Beginning direct materiais pounds 41,000 14,400 Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour 512 Budgeted income statements Total unit cost 0.4 An accounting assistant has prepared the detailed manufacturing Overhead budget and the selling and administrative expense budget. The latter shows selling experses of 5662,000 for product 30 50 and $363,000 for product 18 60, and administrative expenses of $544,000 for product JB 50 and $343,000 for product B 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30% (a) Your answer is correct Prepare the sales budget for the year MacBook

Answer 1

Direct Labor Budget

	JB 50	JB 60	Total
Units to be produced	395400	207700
Direct labor time per unit	0.4	0.6
Total required direct labor hours	158160	124620
Direct labor rate per hour	$12	$12
Total direct labor cost	$1897920	$1495440	$3393360

Where,

units to be produced = budgeted sales + desired ending finished goods units - beginning finished goods units

for JB 50,

units to be produced = 401100 + 26100 - 31800 = 395400

for JB 60,

units to be produced = 202100 + 19800 - 14200 = 207700