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Comprehensive Problem $6($Algo$)$

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Utease Corporation has several production plants nationwide. A newly opened plant in Dubuque 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 $18,000$ units or $36,000$ direct labor hours$)$:

$\backslash$table$[[\backslash$table$[[$Direct materials $(2\mathrm{.}5$ pounds at $$10)],[$Direct labor $(2\mathrm{.}0$ hours at $$40)],[$Variable overhead $(2\mathrm{.}0$ hours at $$25)],[$Fixed overhead $(2\mathrm{.}0$ hours at $$35)],[$Standard cost per unit$]],$$$,\backslash$table$[[\backslash$table$[[25\mathrm{.}00],[80\mathrm{.}00],[50\mathrm{.}00],[70\mathrm{.}00],[225\mathrm{.}00]]]],,],[\backslash$table$[[$Budgeted selling and administrative costs:$],[$Variable$],[$Fixed$]],,\backslash$table$[[500,000]],$per,un$]]]$

Expected sales activity: $14,000$ units at $$380$ per unit

Desired ending inventories: $12\%$ of sales

Assume this is the first year of operations for the Dubuque plant. During the year, the company had the following activity.

$\backslash$table$[[$Units produced,$17,000],[$Units sold,$15,500],[$Unit selling price,$375],[$Direct labor hours worked,$33,500],[$Direct labor costs,$$1,373,500$