At the beginning of the period, the Fabricating Department budgeted direct labour of $22,500 and equipment amortization of $7,000 for 900 hours of production. The de- partment actually completed 750 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.

2. Day Timer Publishers Inc. projected sales of 205,000 schedule planners for 2010. The estimated January 1, 2010, inventory is 18,500 units, and the desired December 31, 2010, inventory is 15,000 units. What is the budgeted production (in units) for 2010?

3. Soft Glow Candle Co. budgeted production of 78,900 candles in 2010. Wax is required to produce a candle. Assume 500 grams (one-half of a kilogram) of wax is required for each candle. The estimated January 1, 2010, wax inventory is 2,000 kilograms. The desired December 31, 2010, wax inventory is 2,400 kilograms. Each candle requires moulding. Assume that 15 minutes are required to mould each candle. If moulding labour costs $16.00 per hour and candle wax costs $3.20 per kilogram, determine the direct labour cost budget for 2010 and the direct materials purchases budget for 2010.

4. Prepare a cost of goods sold budget for Soft Glow Candle Co. using the information in Practice Exercises 23-3A and 23-4A. Assume the estimated inventories on January 1, 2010, for finished goods and work in process were $12,000 and $4,000, respectively. Also assume the desired inventories on December 31, 2010, for finished goods and work in process were $11,200 and $5,000, respectively. Factory overhead was budgeted at $108,000.