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Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, 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:

Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, 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 orn direct labor hours, are as follows: Manufacturing costs (per unit based on expected activity of 30,000 units or 54,000 direct labor hours): Direct materials (2.5 pounds at $14) Direct labor (1.8 hours at $75) Variable overhead (1.8 hours at $20) Fixed overhead (1.8 hours at $30) 35 135 36 54 Standard cost per unit 260 Budgeted selling and administrative costs: Variable Fixed 8 per unit $ 1,600,000 Expected sales activity: 26,000 units at $500 per unit Desired ending inventories: 16% of sales Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, 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 orn direct labor hours, are as follows: Manufacturing costs (per unit based on expected activity of 30,000 units or 54,000 direct labor hours): Direct materials (2.5 pounds at $14) Direct labor (1.8 hours at $75) Variable overhead (1.8 hours at $20) Fixed overhead (1.8 hours at $30) 35 135 36 54 Standard cost per unit 260 Budgeted selling and administrative costs: Variable Fixed 8 per unit $ 1,600,000 Expected sales activity: 26,000 units at $500 per unit Desired ending inventories: 16% of sales

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