Ladderton Electronics Inc. manufactures three models of electric power supply units, Economy, Standard, and Deluxe. They are sold in four different markets, Eastern United States, Western United States, Europe, and Asia. Each unit converts electric current from AC to DC for use in various types of electronic equipment ranging from radios and televisions to computers. The three different units produce DC output at different wattage levels. The product is manufactured in two producing departments, Assembly and Testing. Estimates for the coming year follow: (a) Sales forecast by territory:

(b) Inventories:

Work in Process: None at beginning or end of period.

(c) Materials requirements for products and estimated materials costs:

(d) Estimated labor time requirements and rates in hours:

(e) Estimated machine time in Testing Department:

(f) Budgeted factory overhead:

Overhead is allocated to production on the basis of direct labor hours in the Assembly Department and on the basis of machine hours in the Testing Department.
(g) Budgeted commercial expenses:
Marketing: $6,145,000.
Administration: $2,330,500.
(h) Income tax rate is 40%.
Required:
Prepare annual budget schedules. The schedules should be designed to provide essential data in a form that is easily understood and should include the following:
(1) Sales budget-by models and by sales territories
(2) Production budget-by models and by units
(3) Direct materials budget in units-by materials and by models
(4) Materials purchases budget-by materials and by cost
(5) Cost of materials required for production-by materials and by models
(6) Direct labor budget-by models and departments, with costs and hours
(7) Budgeted machine hours in the Testing Department
(8) Budgeted factory overhead and departmental rates
(9) Budgeted unit product costs
(10) Beginning and ending inventories
(11) Budgeted cost of goods manufactured and sold
(12) Budgeted income statement

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Units Sales Price Model Economy Standard... Deluxe... Eastern US. Western U.S. Europe Asia per Unit 60,000 50,000 45,000 40,000 00 75,000 25,000 $50.00 60,000 35,000 70.00 35,000 30,000 90.00 20,000 25,000 Cost per Desired Units in Unit in Units in Beginning Beginning Ending Inventory Inventory Invento Materials: 10,000 15,000 25,000 25,000 10,000 30,000 $1.50 4.50 .70 1.75 .20 50 5,000 10,000 25,000 20,000 50,000 40,000 Boxes Transformers ………. Diode rectifiers... Flters.... Wire (in feet) Cost per Unit in Desired Units in Units in Beginning Beginning Ending Inventory Inventory Inventory Finished Goods (fifo) Economy Model Standard Model Deluxe Model.... 15,000 15,000 15,000 $25.00 38.50 55.25 20,000 15,000 10,000 Estimated Economy Standard Deluxe Cost per Unit Model 2 3 Material Model Model of Material $1.50 4.50 70 1.75 Transformers 3 2 2 Filters Resistors Wire (in feet).. 6 10 .50 Assembly Testing artment Department Product Economy Model. .50 .75 1.00 $10 .05 .05 05 $12 Direct labor rate per hour..... Hours Required .15 .25 .35 Product Standard Mode. odel.... Assembly Department Testing Department Variable Rate per Fixed Rate per Cost Machine Variable Fixed Cost Labor Hour Estimate Estimate Hour Indirect materials and supplies$158,000 350,000 382,500 347,500 65,000 25,000 12,000 241,125 $1.50 $157,000 S35 250,000 1.00 .10 Indirect labor. Payroil taxes. Employee fringe benefits. Equipment depreciation … Repairs and maintenance.... Allocated building costs.... Allocated general factory costs.. 50 .05 55,000 114,000 215,000 40 35,000 150 9,000 82,700