Budget Preparation

Collins Company is preparing its master budget for April. Use the given estimates to determine the amounts necessary for each of the following requirements. $($Estimates may be related to more than one requirement.$)$

a$.$ What should total sales revenue be if territories A and B estimate sales of $10,000$ and $13,000$ units, respectively, and the unit selling price is $$43?$

$Answer $1$

$989,000$

b$.$ If the beginning finished goods inventory is an estimated $2,000$ units and the desired ending inventory is $3,000$ units, how many units should be produced?

Answer $2$

$24,000$

c$.$ What dollar amount of material should be purchased at $$4$ per pound if each unit of product requires $3$ pounds and beginning and ending materials inventories should be $5,000$ and $4,000$ pounds, respectively?

$Answer $3$

$260,000$

d$.$ How much direct labor cost should be incurred if each unit produced requires $1\mathrm{.}5$ hours at an hourly rate of $$14?$

$Answer $4$

$483,000$

e$.$ How much manufacturing overhead should be incurred if fixed manufacturing overhead is $$52,000$ and variable manufacturing overhead is $$2\mathrm{.}50$ per direct labor hour?

$Answer $5$

$138,250$