Anticipated sales for Safety Grip Company were 40,000 passenger car tires and 12,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table:

	Passenger Car	Truck
Rubber	25 lbs. per unit	58 lbs. per unit
Steel belts	4 lbs. per unit	10 lbs. per unit

The purchase prices of rubber and steel are $3.3 and $4.3 per pound, respectively. The desired ending inventories of rubber and steel belts are 38,000 and 8,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 44,000 and 6,000 pounds, respectively.

Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9.

Safety Grip Company
Direct Materials Purchases Budget
For the Year Ending December 31, 20Y9
	Rubber	Steel Belts	Total
Pounds required for production:
Passenger tires	lbs.	lbs.
Truck tires
Desired inventory, December 31, 20Y9
Total	lbs.	lbs.
Estimated inventory, January 1, 20Y9
Total units purchased	lbs.	lbs.
Unit price	x $	x $
Total direct materials to be purchased	$	$	$

2) Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows:

	Junior	Pro Striker
Production budget	5,800 units	22,100 units

Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:

	Forming Department	Assembly Department
Junior	0.2 hour per unit	0.5 hour per unit
Pro Striker	0.3 hour per unit	0.6 hour per unit

The direct labor rate for each department is as follows:

Forming Department	$16 per hour
Assembly Department	$13 per hour

Prepare the direct labor cost budget for July 20Y9.

Ace Racket Company
Direct Labor Cost Budget
For the Month Ending July 31, 20Y9
	Forming Department	Assembly Department
Hours required for production:
Junior
Pro Striker
Total
Hourly rate	x$	x$
Total direct labor cost	$	$

3) Sweet Tooth Candy Company budgeted the following costs for anticipated production for August:

Advertising expenses	$279,250
Manufacturing supplies	15,310
Power and light	45,650
Sales commissions	312,220
Factory insurance	26,580
Production supervisor wages	134,260
Production control wages	34,910
Executive officer salaries	284,620
Materials management wages	38,380
Factory depreciation	21,750

Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.

Sweet Tooth Candy Company
Factory Overhead Cost Budget
For the Month Ending August 31
Variable factory overhead costs:
Manufacturing supplies	$
Power and light
Production supervisor wages
Production control wages
Materials management wages
Total variable factory overhead costs		$
Fixed factory overhead costs:
Factory insurance	$
Factory depreciation
Total fixed factory overhead costs
Total factory overhead costs		$