Fuqua Company's sales budget projects unit sales of part 198Z of 10,000 units in January, 12,000 units in February, and 13,000 units in March. Each unit of part 198Z requires 4 kilos of materials, which cost $2 per kilo. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and it's ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2014. Prepare a production budget for January and February 2015. Prepare a direct materials budget for January 2015. Hopkins Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2014,11, 200 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used. Compute the total, price, and quantity variances for: materials and labor. Which of the variances should be investigated if management considers a variance of more than 4% from standard to be significant