Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows:

[The following information applies to the questions displayed below] Utease Corporation has many production plants across the midwestern United States. A newly opened plant the Bellingham plant, produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows: Manufacturing costs (per unit based on expected activity of 30,000 units or 54,000 direct Direct materials (2.5 pounds at $14) Direct labor (1.8 hours at $75) Variable overhead (1.8 hours at $20) Fixed overhead (1.8 hours at S30) labor hours): 35 135 36 54 Standard cost per unit 260 Budgeted selling and administrative costs: 8 per unit Variable Fixed $ 1,600,000 Expected sales activity: 26,000 units at $500 per unit Desired ending inventories: 16% of sales Assume this is the first year of operations for the Bellingham plant. During the year, the company had the following activity: Units produced Units sold Unit selling price Direct labor hours worked Direct labor costs Direct materials purchased Direct materials costs Direct material used Actual fixed overhead Actual variable overhead Actual selling and administrative costs 29,000 27,500 495 51,700 3,929,200 76,500 pounds $ 1071,000 76,500 pounds $1,300,000 $ 980,000 $2,008,000 In addition, all over- or underapplied overhead and all product cost variances are adjusted to cost of goods sold. value: 10.00 points Instructions a. Prepare a production budget for the coming year based on the available standards, expected sales, and desired ending inventories. Units Planned production of finished goods