1.

At the beginning of the period, the Fabricating Department budgeted direct labor of $74,800 and equipment depreciation of $54,000 for 6,800 hours of production. The department actually completed 8,700 hours of production.

Determine the budget for the department, assuming that it uses flexible budgeting.

2.

Pasadena Candle Inc. projected sales of 36,000 candles for January. The estimated January 1 inventory is 2,200 units, and the desired January 31 inventory is 3,000 units.

Prepare a production budget report in units for Pasadena Candle Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Pasadena Candle Inc. Production Budget For the Month Ending January 31

Estimated beginning inventory, January 1Estimated ending inventory, January 31Expected units to be producedExpected units to be sold	- Select -
Desired beginning inventory, January 1Desired ending inventory, January 31Estimated beginning inventory, January 1Expected units to be produced	- Select -
Total units available	fill in the blank 5
Estimated beginning inventory, January 1Estimated ending inventory, January 31Expected units to be producedExpected units to be sold	- Select -
Total units to be produced in January	fill in the blank 8

3. Pasadena Candle Inc. budgeted production of 725,000 candles for the January. Wax is required to produce a candle. Assume 14 ounces of wax is required for each candle. The estimated January 1 wax inventory is 18,000 pounds. The desired January 31 wax inventory is 14,500 pounds. If candle wax costs $1.20 per pound, determine the direct materials purchases budget for January. (One pound = 16 ounces.) Round all computed answers to the nearest whole number. For those boxes in which you must enter subtracted or negative numbers use a minus sign.