est PROJECT (50 pts) Questions 1-3 (of 3) Save&Exlt Submit The following information applies to the questions displayed below. lguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.50 per foot. Each frame takes appraximately 30 minutes to build, and the labor rate averages $14 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month's sales. Ending raw materials inventory should be 30 percent of next month's production. Expected unit sales (frames) for the upcoming months follow March Aprl May June July August 315 330 380 480 455 505 Variable manufecturing overheed is incurred at a rate of $0.60 per unit produced. Annual fixed manufacturing overhead is estimated to be $7.200 ($600 per month) for expected production of 3,000 units for the year Selling and administrative expenses are estimated at $650 pe month plus $0.50 per unit sold guana, Inc, had $11,000 cash on hand on April 1 Of ts sales, 80 perceat s in cash Of the crecit sales, 50 percent is collected during the month of the sale, Of raw materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Row materials purchases for March 1 totaled $300o. All other operating costs are paid during the month incurred Monthly fixed manufacturning overhead includes $230 in and 50 percent is collected during the month following the sole depreclation. During April, Iguana plans to pay $2,000 for a piece of equiament Required information 1. 33.33 points