QUESTION 4 Partially correct Mark 14.00 out of 69.00 Flag question Preparation of Individual Budgets During the first calendar quarter of 2016, Clinton Corporation is planning to manufacture a new product and introduce it in two regions. Market research indicates that sales will be 6,000 units in the urban region at a unit price of $53 and 5,000 units in the rural region at $48 each. Because the sales manager expects the product to catch on, he has asked for production sufficient to generate a 4,000-unit ending inventory. The production manager has furnished the following estimates related to manufacturing costs and operating expenses: Variable Fixed (per unit) (total) Manufacturing costs: Direct materials $12.60 9.30 7.50 A (4 lb. @S3.15/lb.) B (2 lb. @$4.65/b.) Direct labor (0.5 hours per unit) Depreciation Factory supplies Supervisory salaries Other $7.650 .0 4500 - 28,800 0.75 22.950 Operating expenses: Selling Advertising Sales salaries & commissions* Other* 22.500 1.50 15,000 .0 3.000 Administrative: Office salaries Supplies Other 2.700 0.15 1,050 0.08 1,950 *Varies per unit sold, not per unit produced a. Assuming that the desired ending inventories of materials A and B are 4,000 and 6,000 pounds respectively, and that work-in-process inventories are immaterial, prepare budgets for the calendar quarter in which the new product will be introduced for each of the following operating factors: Do not use negative signs with any of your answers below 1. Total sales 558,000 2. Production x units 558,000 2. Production x units 3. Material purchase cost Material A Material B Total pounds (lbs.) required for production 4,000 6,000 x Desired ending materials inventory 60,000 30,000 Total pounds to be available 64000 36,000 Beginning materials i Total material to be purchased (lbs.) 64,000 36,000 Total material purchases (S) 3.15 X 465 X 4. Direct labor costs 112,500 5. Manufacturing overhead costs Fixed Variable Total Depreciation Factory supplies Supervisory salaries Other 6. Selling and administrative expenses Fixed Variable Total Selling expenses: Advertising Sales salaries and commissions Other Total selling expenses Administrative expenses Administrative expenses. Office salaries Supplies Other Total administrative expens Total selling and administrative expenses