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d. actual costs are more than standard costs QUESTIONS Chapter 22 Workout Question Part A Brown Enterprises is creating its budgets for the upcoming year.

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d. actual costs are more than standard costs QUESTIONS Chapter 22 Workout Question Part A Brown Enterprises is creating its budgets for the upcoming year. The following details are known about Brown's production processes One finished unit requires three ounces of direct materials. An ince of direct materials costs $30 per ounce . By company policy Brown maintains raw materials inventories equal to 20 percent of the following month's production requirements All materials are paid for in cash upon purchase fle not materials are bought on account . For direct labor, one finished unit requires 2 workers to each work 2 direct labor hours. Currently Brown pays $25 per direct laborhout All manufacturing overhead costs are foxed costs. The total fixed MOH Cost to Brown is 51.100.000 per month of this 51.100.000 per month $350.000 is factory depreciation expense. The remaining fixed MOH Costs are paid using cash during the month of the expenditure. A company accountant has already prepared the direct labor budgets the first quarter in 2015. Budgeted direct labor costs are 1979.500 infanuary 31.107.000 in February and 51.245.000 in March How much is the dollar value of February's budgeted direct material purchases the how much cash will Brown pay out in February for its materials purchases? Do not include a dollar sign in your answer and round to the penny

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