6-40 Comprehensive problem; ABC manufacturing, two products. Hazlett, Inc., operates at capacity and makes plastic combs and hairbrushes. Although the combs and brushes are a matching set, they are sold individually and so the sales mix is not 1:1. Hazlett's management is planning its annual budget for fiscal year 2015. Here is information for 2015: Input Prices Direct materials Plastic Bristles $0.30 per ounce $0.75 per bunch $ 18 per direct manufacturing labor-hour Direct manufacturing labor Input Quantities per Unit of Output Combs Brushes Direct materials Plastic 5 ounces Bristles Direct manufacturing labor Machine-hours (MH) 8 ounces 16 bunches 0.2 hours 0.1 MH 0.05 hours 0.025 MH Inventory Information, Direct Materials Beginning inventory Target ending inventory Cost of beginning inventory Plastic 1,600 ounces 1,766 ounces $456 Bristles 1,820 bunches 2,272 bunches $1,419 Hazlett accounts for direct materials using a FIFO cost flow