Empire Chemical Company produces three products using three different continuous processes. The products are Yarex, Darol, and Norex. Projected sales in gallons for the three products for the years 20x2 and 20x3 are as follows. Yarex Darol Norex zox2 20x3 60,000 65,000 40,000 35.000 25,000 30,00 Inventories are planned for each product so that the projected finished goods inventory at the beginning of each year is equal to 8 percent of that year's projected sales Because of the continuous nature of Empire's processes, work-in-process inventory for each of the products remains constant throughout the year The raw-material requirements of the three products are shown in the following chart Raw Material Us Daro pounds 5 3.ee pounds gallons gallons 0.4 Murad Islin Tarden Unit Price Yarex 0.2 6.00 0.4 5.00 1.0 10.00 0.7 0. 0.5 3.5 0.5 Raw.material inventories are planned so that each raw material's projected inventory at the beginning of a year is equal to 10 percent of the previous year's usage of that raw material The conversion requirements in hours per gallon for the three products are Yarex 007 hour; Darol, 0.10 hour and Norex 016 hour The conversion cost of $20 per hour is considered 100 percent variable: Yarex Darol Norex Required production in gallons in 20x2 Roq Req 2 > Conversion cost budget Islin for 20x2. di porcides budget in dollars) to Purchases budget & Req2 Req4A > Increase in cost of raw material Decrease Net increase in conversion cost in production cost