Abbott Suit (ASC) corporation manufactures BOTH nylon AND cotton jogging suits.

On 1/1/20, Erin Rogers ESTIMATES the following fixed costs:

Accountants salary $10,000

Depreciation on factory equipment $4,000

Rent on Manufacturing Facility $6,000

ABBOTT SUIT CORPORATION USES DIRECT LABOR HOURS TO ALLOCATE DEPRECIATION AND RENT.

	Nylon Jogging Suits		Cotton Jogging Suits
	Std.qty/suit	Std.price/input	Std.qty/suit	Std.price/input
Direct Materials	2.5 yds/suit	$20/yd	4 yds/suit	$15/yd
Direct Labor	5 dlh/suit	$10/dlh	4 dlh/suit	$15/dlh
VOH:utilities/grease/janitor	5 mh/suit	$10/mh	8 mh/suit	$10/mh

REQUIRED:

1. Calculate the number of nylon and cotton jogging suits that need to be SOLD to achieve a goal operating income of $100,000. ASC believes that for every nylon jogging suit sold TWO TIMES AS MANY cotton jogging suits will be sold (that is if 10 nylon jogging suits are sold, then 20 cotton jogging suits will be sold). ASC estimates that it can sell nylon jogging suits for $250/nylon jogging suit and cotton jogging suits for the same price of $250/cotton jogging suit. SHOW YOUR WORK
2. ASC currently has the following inventory balances as of the BEGINNING of the year: 0 nylon jogging suits and 0 cotton jogging suits. ASC budgets to have 200 nylon jogging suits and 300 cotton jogging suits by the end of the year. Calculate the BUDGETED # of suits that need to be produced.
3. Calculate the (FPDOH) FIXED PREDETERMINED OVERHEAD RATE.