A manufacturing company HES Inc. has two product lines. Traditional product has a unit price of $340 and Classic has a unit price of $480. The firm’s manufacturing overhead costs are applied as $420 per direct labor hour.

2. Prepare a gross margin table based on activities method with sales and COGS in total dollars for 2020 for both product lines
 
 

HES Inc Budgeted statement of gross margin 2020 Sales in units Beginning finished goods Direct material Direct labor Ending finished goods Cost pool info for 2020 Overhead breakdown in percentage Machining Assembly Material Handling Inspection Total Direct labor hours Machine hours Assembly hours Material handling parts Inspection hours Projections 2021 Traditional 10000 Ending inventory in dollars Sales in units $480,000.00 $2,000,000.00 $370,370.00 $480,000.00 Traditional 2000 30000 12000 10 1000 Traditional $460,000.00 10200 Classic 8000 $500,000.00 $3,400,000.00 $185,186.00 $520,000.00 49.00% 29.60% 6.95% 14.45% 100.00% Products Products Classic 1000 60000 11000 20 1500 Total 18000 $980,000.00 $5,400,000.00 $555,556.00 $1,000,000.00 Classic $510,000.00 7800