Sandhill Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the following. Product
JB 50
Product
JB 60
Sales budget:
Anticipated volume in units
392,000 196,000
Unit selling price
$20 $25
Production budget:
Desired ending finished goods units
29,400 14,700
Beginning finished goods units
24,500 9,800
Direct materials budget:
Direct materials per unit (pounds)
2 3
Desired ending direct materials pounds
29,400 9,800
Beginning direct materials pounds
39,200 14,700
Cost per pound
$3 $4
Direct labor budget:
Direct labor time per unit
0.40 0.60
Direct labor rate per hour
$12 $12
Budgeted income statement:
Total unit cost
$13 $20

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $548,800 for product JB 50 and $352,800 for product JB 60, and administrative expenses of $529,200 for product JB 50 and $333,200 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 20%.