1) Hickman & Reid manufactures hand-sewn silk ties. The Company applies overhead using direct labor hours as the application base. The direct labor quantity standard for making a tie is 6 minutes. The Company estimates overhead to be $2,250,000 for the coming year, based on production of 1,500,000 ties. What is the standard overhead cost per tie?

a. $1.50

b. $6.00

c. $8.00

d. &9.00

2) Stacy Moore is preparing the materials purchases budget for the second quarter. The production manager has provided the following production budget: April - 65,000 units, May - 50,000 units, June - 70,000 units. Each unit requires 8 pounds of direct materials, and Stacy wants to maintain an ending inventory equal to 20 percent of the next month's production needs. How many pounds of material will Stacy budget to purchase in May?

a. 480,000

b. 456,000

c. 432,000

d. 400,000