6) DeGrom Corporation produces and sells Product "Mr. Met". To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month. Budgeted sales of Product "Mr. Met" over the next four months are:

June

July

August

September

Budgeted sales in units

40,000

70,000

50,000

80,000

Budgeted production for August would be:

A) 57,500 units

B) 107,000 units

C) 70,000 units

D) 80,000 units

7) On November 1, Brady Corporation has 200 units of leather footballs on hand. The company plans to sell 1,100 units of the product during November and plans to have 400 units on hand November 30. How many units must be produced during November?

A) 1,400

B) 1,500

C) 1,100

D) 1,300

8) Graff Corporation manufactures and sells women's skirts. Each skirt (unit) requires 2.1 yards of cloth. Selected data from Graff master budget for next quarter are shown below:

July

August

September

Budgeted sales (in units)

7,000

8,000

10,000

Budgeted production (in units)

8,000

11,500

13,000

Each unit requires 0.8 hours of direct labor, and the average hourly cost of Graff direct labor is $18. What is the cost of Graff Corporation's direct labor in September?

A) $198,000

B) $158,400

C) $187,200

D) $234,000