Problem 1 Budgeting

Corporation has the following information available:

Units Sold 3,000

Unit Price $80.00

Budgeted Direct Materials Per Unit 1.50

Budgeted Direct Labor Hours Per Unit 1.75

Overhead Rate Per Direct Labor Hour $15.00

Current Inventory of Finished Goods 200

Target Inventory of Finished Goods 100

Current Inventory of Direct Materials 300

Target Inventory of Direct Materials 400

Cost Per Direct Material $5.00

Cost Per Direct Labor Hour $15.00

1. What is the budget for direct labor (in dollars)?

2. What is the budget for overhead?

3. What is the budgeted gross profit?

Show the calculations please, type. No excel :)