Fillmore Company has developed the following standards related to the production of their finished units: Direct Materials (15 pounds per unit @ $3 per pound) Direct Labor (9 hours per unit @ $24 per direct labor hour) Variable Overhead (8 machine hours @ $6 per machine hour) Fixed overhead costs are estimated at $499, 200 per quarter. Selling and administrative costs are expected to be $7 per unit variable and $450,000 fixed per quarter. The expected selling price is $550 per unit. The following sales forecast is available for the year 2022: 1st Quarter 5,000 units: 2nd Quarter 8,000 units: 3rd Quarter 11,000 units; and the 4th Quarter 7.000 units. The expected sales in the 1st Quarter of the year 2023 are 5,800 units. Management policy is to maintain a finished goods inventory equal to 25% of the next quarter's sales and a raw materials inventory equal to 30% of the next quarter's material production requirements. The beginning inventories of the 1st quarter of the year 2022 are expected to meet these same requirements, REQUIRED: Part A In the attached workpaper #1: Prepare a production budget, by quarters for 2022. (12 pts Prepare a direct materials budget for the first TWO quarters of 2022. (12 pts) Part B per machine hour Compute the following amounts: What is the budgeted annual production for the year 2022? (1 pt) units What are the budgeted annual machine hours needed for production for the year 2022? (1 pt) machine hours What are the budgeted annual fixed overhead costs for the year 2022? (1 pt) Based on an activity measure of machine hours, what is the pre-determined fixed overhead rate for the year 2022? (2 pts) What is the total expected cost to produce one finished unit? (4 pts) per unit Part Compute the following amounts for the FIRST Quarter of 2022 only: (2 pts each) What is total budgeted direct labor cost? What is total budgeted variable overhead cost? What is total budgeted fixed overhead cost? What amount of fixed overhead cost will be applied to production? What are total budgeted dollar sales? What is total budgeted cost of goods sold? What are the total budgeted selling and administrative costs? What is the budgeted net income? What is the budgeted ending balance in dollars) of the raw materials inventory? What is the budgeted ending balance in dollars) of the finished goods inventory? Part D What amount of fixed overhead cost will be applied to production for the year 2021? (2 pts) Total Prepare a production budget by quarters for the year 2021 PRODUCTION BUDGET Quarter Quarter 2 Quarter 3 Quarter 4 Sales Forecast Parmed Ending Urets Total Production Beginning Unis Units to be produced Prepare a direct materials purchase budset for the first TWO quarters of the year 2021 onty DIRECT MATERIALS PURCHASE BUDGET Quarter 1 Quarter 2 Quarter 3 Quarter 4 Units to be produced Inventory Requirement Inventory Closing Unit Total Unit requirement Opering Inventory Invertory requred to purchase Cost of Purchase Total
