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Q.4) (22 points) The ABC Corporation manufactures and sells two products: T1 and T2. 20XX budget for the company is given below: Projected Sales Units
Q.4) (22 points) The ABC Corporation manufactures and sells two products: T1 and T2. 20XX budget for the company is given below: Projected Sales Units Price TI 60,000 $165 T2 40,000 $250 T2 Inventories in Units January 1, 20XX December 31, 20XX 20,000 25,000 8,000 9,000 The following direct materials are used in the two products: Amount used per unit Direct Material Unit T2 A pound 4 5 B pound 2 3 each 0 Direct Material A B Anticipated Purchase Price $12 $5 $3 Inventories January 1, 2012 December 31, 2012 32,000 lb. 36,000 lb. 29,000 lb. 32,000 lb. 6,000 units 7,000 units Projected direct manufacturing labor requirements and rates for 20XX are as follows: Hours per Unit Rate per Hour 2 $12 T2 3 $16 3 Manufacturing overhead is allocated at the rate of $20 per direct manufacturing labor-hour. Marketing and distribution costs are projected to be $100,000 and $ 300,000, respectively. a. What is the total expected revenue in dollars) for 20XX? b. What is the expected production level in units) both for T1 and T2? c. What is the total direct material purchases (in dollars) for each type of direct material? d. What is the total direct manufacturing labor cost in dollars)? e. What is the total overhead cost in dollars)? f. What is the total cost of goods sold (in dollars)? g. What is the total expected operating income (in dollars) for 20XX
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