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Crane Company is planning to sell 700 boxes of ceramic tile, with production estimated at 670 boxes during May. Each box of tile requires 40
Crane Company is planning to sell 700 boxes of ceramic tile, with production estimated at 670 boxes during May. Each box of tile requires 40 pounds of clay mix and a 0.25 hour of direct labor. Clay mix costs $0.30 per pound and employees of the company are paid $10 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Crane has 3400 pounds of clay mix in beginning inventory and wants to have 4500 pounds in ending inventory. What is the budgeted amount of direct materials to be purchased (in pounds) for the month? O 27900 O29100 O 26800 O 25700
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