=+e. Unit costs for direct materials:

Material A: $4.00 per lb.

Material B: $2.00 per lb.

f. Direct labor requirements:

Department 1 Department 2 Product K 0.4 hr. per unit 0.15 hr. per unit Product L 0.6 hr. per unit 0.25 hr. per unit g. Department 1 Department 2 Direct labor rate $12.00 per hr. $16.00 per hr.

h. Estimated factory overhead costs for July:

Indirect factory wages $200,000 Depreciation of plant and equipment 40,000 Power and light 25,000 Indirect materials 34,000 _________ Total $299,000 _________ _________ Instructions 1. Prepare a sales budget for July.

2. Prepare a production budget for July.