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Calaulator eBook Operating Budget, Comprehensive Analysis Allison Manufacturing produces a subassembly used in the production of jet alrcraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming 5 months follow January February March April 40,000 50,000 60,000 60,000 62,000 May The following data pertain to production policies and manufacturing speifications followed by Allison Manufacturing a. Finished goods inventory on January 1 is 32,000 units, each costing S 166.06. The desired ending inventory for each month is 80% of the next month's sales. b. The data on materials used are as follows: DM Unit Cost ($) Direct Material Metal Components Inventory policy dictates tat sumoert materials be on hand at the end of the month to produce so% orthe next months roduction meds. ms is exactly the amount of material on hand on December 31 of the prior year. Per-Unit Usage 10 lbs. c. The direct labor used per unit of output is 3 hours. The average direct labor cost per hour is $14.25 d. Overhead each month is estmated using a fiexible budget formula. (Nore: Activity is measured in direct labor hours.) Fixed-CostVariable-Cost Component ()Component ($) Previous Check My Work

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