1.

Direct Labor Cost Budget

Pasadena Candle Inc. budgeted production of 36,000 candles for the year. Each candle requires molding. Assume that four minutes are required to mold each candle. If molding labor costs $13.75 per hour, determine the direct labor cost budget for the year.

Round hourly rate to nearest cent, if required.

Pasadena Candle Inc. Direct Labor Cost Budget For the Year Ending December 31
Hours required for assembly:
Candles				min.
Convert minutes to hours				min.
Molding hours				hrs.
Hourly rate			$
Total direct labor cost			$

2.

Sales and Production Budgets

Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget:

	Rumble		Thunder
Estimated inventory (units), June 1	278		81
Desired inventory (units), June 30	320		70
Expected sales volume (units):
Midwest Region	4,100		3,600
South Region	5,050		5,700
Unit sales price	$105		$220

a. Prepare a sales budget.

Sonic Inc.
Sales Budget
For the Month Ending June 30
Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
Model: Rumble
Midwest Region		$	$
South Region
Total			$
Model: Thunder
Midwest Region		$	$
South Region
Total			$
Total revenue from sales			$

b. Prepare a production budget. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Sonic Inc.
Production Budget
For the Month Ending June 30
	Units Rumble	Units Thunder
Total
Total units to be produced