Projected sales product ONE 60 units at $ 70 each product TWO 40 units at $ 100 each Finished units ONE 20 begin 25 end TWO 8 begin 9 end Raw material needed by ONE needed by TWO A 4 grams 5 grams B 2 3 C 0 1 Raw materials begin inventory end inventory cost each A 32 36 $ 8 B 29 32 5 C 6 7 3 Direct labor hours needed cost per hour ONE 2 $ 8 TWO 3 9 Factory overhead application rate $ 2 per direct labor hour Prepare budget 1 sales 2 production 3 direct materials 4 direct labor