Product JB 50 Product JB 60 360,000 180.000 $30 $35 27.000 13,500 22.500 9.000 2 3 Sales budget Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost 27,000 9,000 36,000 13,500 $3 $4 0.4 0.6 $12 $12 $13 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative opense budget The latter shows selling expenses of $504,000 for product JB 50 and $324,000 for product JB 60 and administratorences of $486,000 for productJB 50 and 5306,000 for product JB 60. Interest expense is $150,000 (not allocated to products, income taxes are expected to be 20% JB 50 JB 60 Units to be produced 364500 184500 Direct Labor Time (Hours) per Unit 0.4 0.6 Total Required Direct Labor Hours 145800 110700 Direct Labor Cost per Hour $ 12 $ 12 Total Direct Labor Cost $ 1749600 A 1328400 $ Budgeted Income Statement JB 60 Total JB 50 Purchases Gross Profit Total Operating Expenses Selling Expenses Income from Operations Sales Interest Expense Ending Inventory Beginning Inventory Cost of Goods Sold Net Income /(Loss) Income before Income Taxes Income Tax Expenso Administrative Expenses Operating Expenses