Hazlett, Inc., operates at capacity and makes plastic combs and hairbrushes. Although the combs and brushes are a matching set, they are sold individually and so the sales mix is not 1:1. Hazlett's management is planning its annual budget for fiscal year 2018. Hazlett accounts for direct materials and ending finished goods using a FIFO cost flow assumption. Here is information for 2018:

Input Prices

Direct Materials

Plastic $0.35 per ounce

Bristes $0.70 per bunch

Direct Labor $10 per hour

Input Consumption Combs Brushes

Direct Materials

Plastic 5.5 ounces 8.0 ounces

Bristes 17 bunches

Direct Labor 0.055 hour 0.20 hour

Machine Hours (MH) 0.020 MH 0.17 MH

Inventory Plastic Bristles

Beginning Inventory 1.650 ounces 1.800 bunches

Target Ending Inventory 1,760 ounces 2,272 bunches

Cost of Beginning Inventory $456 $1,019

Sales and Inventory Combs Brushes

Expected Sales in units 12,500 14,000

Selling Price $9 $30

Target Ending Inventory in units 1,700 1,450

Beginning Inventory in units 605 1,200

Beginning Inventory in dollars $2,700 $27,780

Combs are manufactured in batches of 200, and brushes are manufactured in batches of 100. It takes 25 minutes to set up for a batch of combs and 1 hour to set up for a batch of brushes. Hazlett uses activity-based costing and has classified all overhead costs as shown in the following table. Budgeted fixed overhead costs vary with capacity. Hazlett operates at capacity so budgeted fixed overhead cost per unit equals the budgeted fixed overhead costs divided by the budgeted quantities of the cost allocation base. Delivery trucks transport units sold in delivery sizes of 1,000 combs or 1,000 brushes.

Manufacturing Cost Type Budgeted Variable Budgeted Fixed Cost Driver/Allocation Base

Materials handling $15,235 $22,000 Numbers of ounces of plastic used

Setup $10,045 $16,650 Setup hours

Processing $11,640 $37,000 Machine hours

Inspection $10,500 $1,500 Number of units produced

Non-Manufacturing Cost Type Budgeted Variable Budgeted Fixed Cost Driver/Allocation Base

Marketing $20,150 S90,000 Sales revenue

Distribution $1,170 Number of deliveries

Q-1) Calculate budgeted number of combs to be produced.

Q-2) Calculate budgeted unit production cost of comb.

Q-3) Calculate budgeted unit production cost of brush.

Q-4) Calculate budgeted dollar cost of ending finished good inventory.

Q-5) Caleulate budgeted cost of goods manufactured.

Q-6) Calculate budgeted sales revenue.

Q 7) Calculate budgeted cost of goods sold.

Q 8) Calculate budgeted marketing costs.

Q 9) Calculate budgeted distribution costs.

Q 10) Calculate budgeted operating income.