(Production and related schedules) Lewis Corp. manufactures and sells plastic boxes and trays. Sales are projected to be evenly spread over the annual pe¬ riod. Estimated product sales and material needs for each unit of product follow:

Material A costs $0.05 per pound, and Material B costs $0.08 per pound. Prepare the following information:

a. Production schedule by product and in total.

b. Purchases budget in units by product and in total as well as in dollars. C. Direct labor budget in hours by product and in total.

d. Overhead to be charged to production by product and in total.LO.1

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Annual sales Material A Boxes 84,000 2.0 pounds Trays 60,000 1.0 pound Material B 3.0 pounds 4.0 pounds Direct labor 2.0 hours 0.5 hour Overhead is applied at a rate of $1.60 per direct labor hour. Material A Material B Boxes Trays Expected Beginning Inventories 2,000 pounds 5,000 pounds 1,000 units 300 units Desired Ending Inventories 2,500 pounds 3,400 pounds 1,200 units 450 units