Revenue and production budgets. (CPA, adapted) ‘Iwo products are manufactured by the 2. Production Widgets Burlington Northern Corporation: Widget and Thingamajig. In July 2009, the controller 65,000 units of Burlington Northern, upon instructions from senior management, had the budgeting Thingamajigs 41,000 units department gather the following data in order to prepare budgets for 2010:

Manufacturing overhead is allocated at the rate of $24 per direct manufacturing labour-hour.
REQUIRED Based on the preceding projections and budget requirements for Widgets and Thingamajigs, prepare the following budgets for 2010:LO1

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Product Widget Thingamajig 2010 Projected Sales Units 60,000 40,000 2010 Inventories in Units Price $198 $300 Expected Target Product January 1, 2010 December 31, 2010 Widget 22,000 27,000 Thingamajig 10,000 11,000