1. Flexible budgeting Obj. 2 At the beginning of the period, the Assembly Department budgeted direct labor of $112,000 and a property tax of $12,000 for 7,000 hours of production. The department actually completed 7,500 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.

2. Production budget Obj. 4 MyLife Chronicles Inc. projected sales of 240,000 diaries for the year. The estimated January 1 inventory is 19,900 units, and the desired December 31 inventory is 18,800 units. What is the budgeted production (in units) for the year?

3. Direct materials purchase budget Obj. 4 MyLife Chronicles Inc. budgeted production of 238,900 diaries for the year. Paper is required to produce a diary. Assume five square yards of paper is required for each diary. The estimated January 1 paper inventory is 32,400 square yards. The desired December 31 paper inventory is 30,800 square yards. If paper costs $0.30 per square yard, determine the direct materials purchases budget for the year