Jackson Incorporated produces leather handbags. The sales budget for the next four months is: July 5,200 units, August 7,800 units, September 7,900 units, and October 8,800 units. Each handbag requires 0.5 square meters of leather. Jackson Incorporated's ending finished goods inventory policy is 10% of next month's sales needs. Jackson Incorporated's ending inventory policy is 40% of next month's production needs. What will leather purchases be in August? Multiple Choice 3,849 square meters 3,791 square meters 3,941 square meters 3,766 square meters Scarlett Company has a direct materials standard of 3 gallons of input at a standard price of $5.00 per gallon. During July, Scarlett Company purchased and used 8,800 gallons at an actual price of $17.00 to produce 1,930 units of product. What is the direct materials quantity variance? Multiple Choice 1,140 favorable 15,050 unfavorable 3,390 favorable 1,080 unfavorable