An Auto company has developed the following production plan:

Month Units

January 10,000

February 8,000

March 9,000

April 12,000

Each unit contains 3 pounds of raw material. The desired raw material ending inventory each month is 120% of the next months production, plus 500 pounds. The beginning inventory meets this requirement. Jordan has developed the following direct labor standards for production of these units Department 1 Department 2

Hours per unit 2.0 .50

Hourly Rate $6.75 $12.00

a. How many pounds of raw material should Jordan Auto budget to purchase in March?

b. How much in direct labor dollars should be budgeted for February usage?