Reference no: EM133143090

Question - 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 the expected activity of 20,000 units or 44,000 direct labor hours):

Direct materials (2.7 pounds at $20) $54.00

Direct labor (2.2 hours at $80) 176.00

Variable overhead (2.2 hours at $30) 66.00

Fixed overhead (2.2 hours at $40) 88.00

Standard cost per unit $ 384.00

Budgeted selling and administrative costs:

Variable $4 per unit

Fixed $1,800,000

Expected sales activity: 18,000 units at $500 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.

Units produced 19,000

Units sold 17,500

Unit selling price $495

Direct labor hours worked 41,300

Direct labor costs $3,345,300

Direct materials purchased 55,300 pounds

Direct materials costs $ 1,106,000

Direct materials used 55,300 pounds

Actual fixed overhead $ 1,300,000

Actual variable overhead $ 1,220,000

Actual selling and administrative costs $ 2,172,000

In addition, all over-or underapplied overhead and all product cost variances are adjusted to the cost of goods sold.

Please help me with this:

Required - Prepare a budgeted responsibility income statement for the Dubuque plant for the coming year.