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 400,000 200,000 Unit selling price $20 $25 Production budget:

Desired ending fi nished goods units 30,000 15,000 Beginning fi nished goods units 25,000 10,000 Direct materials budget:

Direct materials per unit (pounds) 2 3 Desired ending direct materials pounds 30,000 10,000 Beginning direct materials pounds 40,000 15,000 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 $13 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of

$560,000 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 AppendixLO1