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The Sosa Batting Company mamafactures wood basobail bats. Sosa's two primary products are a youth bat, des oned for children and young teens, and an

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The Sosa Batting Company mamafactures wood basobail bats. Sosa's two primary products are a youth bat, des oned for children and young teens, and an adult bat, designed for high school and colege-aged piayors. Sosa selis the buts to sporting goods stores and all sales are on account. The youth bat selts for 530 , the adult bat selts for 510 . Sosar's highest nales volume is in the first three months of the year as retallers prepare for the spring baseball season. Sosa's balance sheet for Deoember 31, 2024, and other data for the first quarter of 2025 follow. (Click the icon to vlewy the balance sheet.) 1. (Click the icen to view the other datia ) Read the coguirements Requirement 2. Prepare Sosa's production budget for the first quarter of 2025 . Requirement 3. Prepare Sosa's direct materials budget, direct labor budget, and manufacturing overtead budget for the first quarter of 2025. Round the predetermined overhead allocation rate to two decimal places. The overhead allocation base is direct labor hours. Beain bv preparing the direct materials budget. More info a. Budgeted sales are 1,500 youth bats and 3,400 adult bats. b. Finished Goods Inventory on December 31, 2024, consists of 450 youth bats at $10 each and 840 adult bats at $13 each. c. Desired ending Finished Goods Inventory is 550 youth bats and 520 adult bats; FIFO inventory costing method is used. d. Direct materials requirements are 44 ounces of wood per youth bat and 54 ounces of wood per adult bat. The cost of wood is $0.20 per ounce. e. Raw Materials Inventory on December 31,2024 , consists of 23,000 ounces of wood at $0.20 per ounce. f. Desired ending Raw Materials Inventory is 23,000 ounces (indirect materials are insignificant and not considered for budgeting purposes). g. Each bat requires 0.3 hours of direct labor; direct labor costs average $16 per hour. h. Variable manufacturing overhead is $0.90 per bat. i. Fixed manufacturing overhead includes $700 per quarter in depreciation and $9,128 per quarter for other costs, such as insurance and property taxes. j. Fixed selling and administrative expenses include $14,000 per quarter for salaries; $5,500 per quarter for rent; $2,000 per quarter for insurance; and $450 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 1% of sales. Data table

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