Direct Materials Purchases Budget

MyLife Chronicles Inc. budgeted production of $238,900$ diaries in $2016.$ Paper is required to produce a diary. Assume five square yards of paper are

required for each diary. The estimated January $1,2016,$ paper inventory is $32,400$ square yards. The desired December $31,2016,$ paper inventory is

$30,800$ square yards. If paper costs $$0\mathrm{.}30$ per square yard, determine the direct materials purchases budget for $2016.$

$$,$xFlexible Budgeting

At the beginning of the period, the Assembly Department budgeted direct labor of $$72,500$ and property tax of $$44,000$ for $2,900$ hours of production. The department

actually completed $3,700$ hours of production.

Determine the budget for the department, assuming that it uses flexible budgeting.