Lakeside Inc. makes two boating products that use similar raw materials: \#401 and \#586. Estimated production needs for a unit of each product follow.

Estimated sales in units by product for the year are 96,000 of \#401 and 36,000 of \#586. Additionally, estimated beginning and desired ending inventory quantities for the year are as follows.

Overhead is applied to production at the rate of \(\$ 20\) per machine hour and the direct labor wage rate is \(\$ 15.00\) per hour. Prepare the following for each of the products:

a. Sales budget (in units)

b. Production budget

c. Purchases budget (steel and wood)

d. Direct labor budget

e. Overhead budget

Transcribed Image Text:

#401 #586 Steel (in pounds) 4.0 3.0 Wood (in board feet). 0.6 0.3 Direct labor (in hours). 2.0 3.0 Machine hours 0.5 0.8