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Problem 9-2A Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product Product
Problem 9-2A Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product Product JB 50 JB 60 Sales budget: Anticipated volume in units 404,900 201,000 Unit selling price $22 $28 Production budget: 29,800 19,900 Desired ending finished goods units 32,200 11,500 Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) 32,100 18,400 Desired ending direct materials pounds Beginning direct materials pounds 43,100 14,300 Cost per pound $3 $4 Direct labor budget: Direct labor time per unit 0.6 0.4 Direct labor rate per hour $11 $11 Budgeted income statement: Total unit cost $12 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $665,000 for product JB 50 and $361,000 for product JB 60, and administrative expenses of $543,000 for product JB 50 and $341,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%
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