mor Corporation: Production Budget For the Period Ended December 31, 20x5 Budgeted production volume: Product A Product B Total production for the period Budgeted production costs: Direct technology: Product A Product B Activity cost pools: Purchasing Quality control Maintenance Warehousing Expediting Total production costs ACTIVITY Purchasing Quality control - Maintenance Following are the budgeted data for the Stor- Warehousing Expediting $20,000 80,000 $25,000 30,000 5,000 75,000 30,000 100,000 units 200,000 units 300,000 units Direct materials costs are not included in the production budget. Also, because Stormor is highly automated and all labor is handled as indirect labor, a direct labor cost element is not included in the budget. Direct technology runs at 80 units per hour to produce product A and 40 units per hour to make product B. Product A requires 1,250 hours of machine time per year, and product B requires 5,000 hours. Direct technology costs are assigned to the products on the basis of machine hours.Activity drivers for Stormor's ABC system follow: $100,000 165,000 $265,000 ACTIVITY DRIVER Number of purchase orders per 1,000 units of fin- ished product Number of hours of quality testing per 1,000 units of finished product Number of hours of equipment maintenance per 100 hours of machine time Number of units of finished product per pallet Number of units of finished product PRODUCT A 10.0 10.0 4.0 40.0 100,000 PRODUCT B 7.5 2.5 1.5 40.0 200,000 a. Prepare a bill of activities for product A and product B as of December 31, 20x5, assuming that the budgeted amounts are the actual amounts. b. Following are the actual production data for the period: PRODUCT A Production volume Direct technology Purchasing Quality control Maintenance Warehousing Expediting.. Total actual costs 110,000 Units $ 30.000 12,000 21,000 2,400 27,000 13,200 $105,600 PRODUCT 13 180,000 Units $ 62,000 14,000 11,000 2,200 44,000 18,000 $151,200 Prepare two bills of activities (including direct technology), one for product A and one for product B, showing the standard product costs (i.e., those established by the budget) adjusted to actual costs per unit.