1. Giantage Corporation produces windows used in residential construction. The company expects to produce 44,550 units next year. With regards to direct materials, each unit of product requires 12 square feet of glass at a cost of $1.50 per square foot. With regards to direct labor, each unit of product requires 2 labor hours at a cost of $15/hour. The following information relates to the manufacturing overhead budget.

Variable Overhead Costs
Indirect materials	$2.50 per unit
Indirect labor	$3.20 per unit
Other	$1.70 per unit
Fixed Overhead Costs
Salaries	$50,000
Rent	$60,000
Depreciation	$36,000

1. Calculate the direct materials budget for Giantage.

Giantage Corporation
Direct Material Budget
Year Ending December 31
Units to be produced
Materials required per Square foot
Material needed in production
Add desired ending inventory
Material needed in inventory
Deduct beginning inventory
Direct materials to be purchased (pounds)
Cost of materials per pound
Cost of materials to be purchased
Direct material cost per unit