Clairpointe Accessories manufactures products for food preparation at several different manufacturing sites. The following costs and

other data apply to unit production from the year just ending:

Direct materials per unit

$6\mathrm{.}2$ board feet of wood at $$26$ per board foot

$2\mathrm{.}8$ pounds of plastic at $$5\mathrm{.}50$ per pound

Direct labor per unit

$2\mathrm{.}4$ hour at $$35$ per hour

Overhead per unit

Indirect labor

Indirect materials

Power

Equipment

Facilities

Total overhead per unit

The plant controller at the Norfolk Street facility is preparing the budget for the coming year. You learn that equipment and facilities

costs are fixed and are based on a normal production of $40,000$ units per year. Other overhead costs are variable. Plant capacity is

sufficient to produce $47,500$ units per year.

Direct labor costs per hour are expected to rise by $5$ percent this year. Wood prices are expected to remain unchanged, but plastic

prices are expected to decrease by $8$ percent. A new production method, which will be put into use at the beginning of the coming

year, will result in a reduction of the wood required to produce a unit by $3$ percent. No other costs are expected to change.

During the coming budget period. Clairpointe expects to sell $42,000$ units. Finished goods inventory is targeted to decrease from the

current balance of $14,000$ units to $13,500$ units as part of a corporate$-$wide initiative to lower inventory levels. Production will occur

evenly throughout the year. Inventory levels for wood and plastic are expected to remain unchanged throughout the year. There is no

work$-$in$-$process inventory.

Requlred:

o$.$ Prepare a production budget for the coming year. and Estimate the direct materials, direct labor, and overhead costs for the coming year.

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Prepare a production budget for the coming year.