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Comprehensive Problem 6 (Algo) [The following information applies to the questions displayed below] Utease Corporation has several production plants nationwide. A newly opened plant in
Comprehensive Problem 6 (Algo) [The following information applies to the questions displayed below] Utease Corporation has several production plants nationwide. A newly opened plant in Dubuque produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours. are as follows. Manufacturing costs (per unit based on expected activity of 29,000 units or 55,100 direct labor hours): Expected sales activity: 25.000 units at $500 per unit Desired ending inventories: 16% of sales Expected sales activity: 25,000 units at $500 per unit Desired ending inventories: 16% of sales Assume this is the first year of operations for the Dubuque plant. During the year, the company had the following activity. In addition, all over-or underapplied overhead and all product cost variances are adjusted to cost of goods sold. Comprehensive Problem 6 (Algo) Part a Required: a. Prepare a production budget for the coming year based on the available standards, expected sales, and desired endin inventories
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