At the beginning of the period, the Fabricating Department budgeted direct labor of $60,900 and equipment depreciation of $42,000 for 2,900 hours of production. The department actually completed 3,500 hours of production.

Determine the budget for the department, assuming that it uses flexible budgeting.

2.

Pasadena Candle Inc. projected sales of 35,000 candles for the year. The estimated January 1 inventory is 2,500 units, and the desired December 31 inventory is 4,000 units.

Prepare a production budget report in units for Pasadena Candle Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Pasadena Candle Inc.
Production Budget
For the Year Ending December 31
Expected units to be sold
Desired ending inventory, December 31
Total units available
Estimated beginning inventory, January 1
Total units to be produced