5. At Krusty Krab, two pounds of material are requlred per un1t of product. Mr. Krab wants materials on hand at the end of each month equal to 5% of the following month's production. On March 31, 229.5 pounds of material are on hand. Material cost is $0.10 per pound. One- half of a month's purchases is paid for in the month of purchase; the other half is paid in the following month. The March 31 accounts payable balance is $900. 6. At Krusty Krab, each Krabby Patty requires 0.025 hours (1.5 minutes) of direct labor. Mr. Krab pays Sponge Bob at the rate of $12 per hour. 7. At Krusty Krab, the variable manufacturing overhead rate is $0.1 per Krabby Patty. Fixed manufacturing overhead is $2,703 per month, which includes $500 of noncash costs (primarily depreciation of plant assets). 8. At Krusty Krab, the variable selling and administrative expenses are $0.05 per unit sold. Fixed selling and administrative expenses are $3,500 per month (including the salary to the Cashier 82 hours per week at the rate of $12 per hour). The xed selling and administrative expenses