0 454,000 Question 10: (1 point) (Not a repeat question.) Hitech Plastics makes injected molded high value plastic components for automobiles, aircraft and even for the space shuttle. They purchase plastic pellets, heat them to a high temperature and use a heavy-duty injection molding machine to force the plastic into the molds. Once the molded components have cooled, they are removed from the molds, trimmed and deburred, and sent to nal inspection. Sales for the rst quarter have been projected as follows: '____3 SaEeS Units 40,000' 50,000 30,000 130,000 70,000 Average Selling Price $13.00j $15.00 $19.o_ $15.00 Production for the components is based on the following manufacturing practices at Hitech Plastics: Finished Goods Inventory is set at next month sales as most of Hitech's customers use Just-in-time mfg. FG inventory at the start of January is 40,000 units. Assume April production is forecast at 70,000 units. Raw material is purchased from several suppliers as it is a commodity and prices are always reacting to competition; each nished unit uses on average 2.5 pounds of plastic pellets at a cost of $0.80 per pound. Manufacturing keeps enough raw material at each month end for 60% of next month's production. Raw material inventory at the start of January is 120,000 pounds. Hitech pays it suppliers in 30 days. At the end of December, Hitech owed its suppliers $96,000. Each unit takes on average 15 minutes to remove the components from the molds and do the necessary trim and deburr work. Workers are paid $15 per hour including fringe benefits. In addition, workers average 40% non-productive time - breaks, training, equipment downtime, etc. - added to production time. Manufacturin Overhead is based on activi anal sis. There are three ma'or activities as follows: Activity Cost Driver Cost Driver Rate Setup & material moves # production batches $600 per batch Inspections # inspections $3 per unit inspected Production scheduling units 1.20 per unit In addition, there is $75,000 per month of management OH expense that cannot be assigned to activities. Product is made in batches of 1,000 units; 20% of units are inspected as Hitech has had quality issues. Manufacturing OH costs include depreciation expense of $30,000 per month spread across activitieslmgmt. Hitech uses the average cost per unit for the quarter to calculate Cost of Goods Sold. What is the budgeted manufacturing OH cost for February? 0 $222,000 0 $147,000