4. Lon Corporation's manufacturing costs for August when production was 800 units appears below: Direct material P10 per unit Direct labor P4,800 Variable overhead 4,000 Factory depreciation 3,000 Factory supervisory salaries 2,000 Other fixed factory costs 1,000 How much is the budgeted manufacturing cost for a month when 900 units are produced? A. P23,800 C. P18,900 B. P24,900 D. P25,650" 5. Why might the number of units in the sales budget and the production budget differ? A. The finished goods inventory levels changed. B. The direct material inventory levels changed C. Excess overhead costs were incurred. D. Customers returned merchandise6. Sunshine Industries' sales budget shows quarterly sales for the next year as follows Quarter Sales (units) First 10,000 Second 8.000 Third 12,000 Fourth 14,000 Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales. Budgeted production for the second quarter should be: A. 8.800 units C. 7.200 units B. 8,400 units. D. 8,000 units." 7. The Nestor Company has budgeted production for next year as follows: Quarter First Second Third Fourth Production in units 10,000 12,000 16.000 14.000 Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 lbs. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the third quarter would be: A. 62,400 lbs. C. 63,200 lbs. B. 50,400 lbs. D. 56,800 ibs.*