e. Manufacturing Overhead Budget Sales Revenue The Eastern Technology Company manufactures Weather Radios for sale to retailers such as Wal-Mart, Target, etc. The 2016 quarterly unit sales estimates and projected sales prices per unit areas follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales units 9,200 $90 9,300 $90 9,500 $90 9,400 $90 Price per unit Also, note that that projected sales (and projected production) for Quarter 1 of 2017 is 10,000 units Product Cost Assumptions The company's product requires two raw materials, resistors and switches. Cost parameters are as follows: Number of Components/Unit Switches @ $4/switch Resistors @ $8/switch 3 2 Number of minutes required to complete finished unit Direct labor minutes per unit 30 Machine minutes per unit 12 Hour rates used Direct labor rate= $10/hour Manufacturing overhead rates (i.e., the PDOHRs to use to apply overhead) Labor-related= $25/hour Machine-related= $40/hour Eastern applies manufacturing overhead using two cost drivers: direct-labor hours and machine hours. Ending Inventories The desired ending inventories for each of the two direct materials is 10% of the next quarter's respective amount of direct materials needed for production. The desired finished goods ending inventory is 5% of the next quarter's budgeted sales units. Beginning inventory for direct materials and finished goods are assumed to be zero as of 1/1/2016. e) Manufacturing Overhead Budget Labor-related rate per hour DL hours required Labor-related OH cost Machine-related rate per hour Machine hours required Machine-related OH cost $ $ $ $ $ $ $ $ Total OH costs OH Cost per unit produced Total Product Cost per Unit Cost of Goods Sold $ $ $ $ $ $ $ $