Budget Preparation

Reeves Company is preparing its master budget for July. Use the given estimates to determine the amounts necessary for each of the following requirements. $($Estimates may be related to more than one requirement.$)$

a$.$ What should total sales revenue be if territories A and B estimate sales of $8,000$ and $20,000$ units, respectively, and the unit selling price is $$55?$

b$.$ If the beginning finished goods inventory is an estimated $2,500$ units and the desired ending inventory is $1,000$ units, how many units should be produced?

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c$.$ What dollar amount of material should be purchased at $$3$ per pound if each unit of product requires $2$ pounds and beginning and ending materials inventories should be $3,000$ and $4,000$ pounds, respectively?

d$.$ How much direct labor cost should be incurred if each unit produced requires $1\mathrm{.}5$ hours at an hourly rate of $$16?$

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e$.$ How much manufacturing overhead should be incurred if fixed manufacturing overhead is $$60,000$ and variable manufacturing overhead is $$2$ per direct labor hour?

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