Little Chef, Inc. manufactures professional grade cookware. Management is currently preparing its operating budgets for the third quarter of the year. The following sales forecast has been prepared: October 5,000 units November 6,000 units December 7,500 units January 8,000 units QUESTION 1: What is the budgeted sales revenue for the third quarter assuming all units sell for $75? $26,500 $1,387,500 $18,500 $1,987,500 Unable to answer without knowing what percentage of sales were made on account. QUESTION 2: If the company wants its ending finished goods inventory to equal 20% of next month's projected unit sales, how many units should the company produce during the quarter? Assume the company expects to have 1,000 units on hand at the end of the second quarter. 17,500 units 20,100 units 17,900 units 21,100 units 19,100 units For the next THREE questions, assume Little Chef only produces enough units to cover the expected sales in the third quarter. QUESTION 3: Each unit produced during the period requires 2 pounds of raw material. Each pound costs $1.20 from the supplier. Little Chef would like 900 pounds of raw material on hand at the end of each month. The safety stock requirement was met at the end of the second quarter. What is the company's budgeted raw material purchases for the third quarter? $45,840 $42,240 $63,600 $46,560 $44,400 QUESTON 4: If each unit produced during the period requires 1.5 hours of direct labor time and direct laborers are paid an average wage rate of $21 per hour, what is the company's budgeted direct labor cost for the third quarter? $582,750 $633,150 $834,750 $601,650 $551,250 The following cost behavior formula was developed for manufacturing overhead expenses: total monthly manufacutring overhead = $0.80 per unit produced x number of units produced + $8,000. What is the company's budgeted manufacturing overhead for the third quarter? $30,800 $38,800 $22,800 $39,280 $68,400 QUESTION 6: Management has separated selling and administrative expenses into the following categories: office supplies $0.75 per unit sold administrative and sales salaries $4,500 per month office rent $1,000 per month sales commissions $0.50 per unit sold depreciation on office and sales equipment $500 per month utilities on office building L- $1,500 per month plus $0.25 per unit sold What is the company's budgeted selling and administative expenses for the third quarter? $47,250 $48,750 $45,625 $50,250 $35,250