Consider the information given in problem 6-37 on pages 235 and 236 of the text (the MLM #8 problem). The questions below refer to modifications of that problem. The following four modifications are applicable to all questions: (i) the projected sales of Thingone and Thingtwo are to be increased by 9,677 each (ii) the variable overhead rate is set at $5 per direct labor hour, (iii) the fixed manufacturing overhead is budgeted at $4,000,000 and the fixed manufacturing overhead rate is not fixed, but is set equal to the quotient of budgeted fixed overhead divided by budgeted direct labor hours, and (iv) the units in beginning and ending finished goods inventories are assumed to be valued at the current unit production costs.

1a. Suppose that the production of Thingone is modified so that it requires 3 pounds of material A, 2 pounds of material B and 2 units of Material C. What would be the total DM purchases (in dollars) for 2020? 1b. Suppose that the target ending inventory of Thingone is modified from 29,000 to 27,000 units, and the target ending inventory of Thingtwo is modified from 8,000 to 7,000 units. What would be Chens budgeted gross profit (or loss) for 2020? 1c. Suppose that the target ending inventory of Thingone is modified from 29,000 to 30,000 units, and the target ending inventory of Thingtwo is modified from 8,000 to 12,000 units. What would be Chens budgeted gross profits for 2020? 1d. Suppose the price of Material B decreases to $4 per pound, what would be the total budgeted DM purchases in dollars for 2020

I have reuploaded the pictures to make them clear.

2020 Projected Sales 2020 Inventories in Units Amount Used per Unit Projected data for 2020 for direct materials are: Projected direct manufacturing labor requirements and rates for 2020 are: Manufacturing overhead is allocated at the rate of $24 per direct manufacturing labor-hour