LPM Ltd. uses units produced as its measure of activity. During August, the company budgeted for 46,700 units of output, but actually produced 48,900 units of output. The company uses the following revenue and cost formulas in its budgeting, where q is the number of units of output: Revenue: $11.604 Salaries: $31,050 + $2.45q Supplies: $1.250 Utilities: $0.600 Insurance: $23,090 Miscellaneous expenses: $13,800 + $0.219 The company reported the following actual results for August: Revenue $611,250 Salaries $148,360 Supplies $ 55,795 Utilities $ 31,920 Insurance $ 22,100 Miscellaneous expense $ 20,845 The activity variance in August for 'Salaries' is: . 55,390 U ob. 52,495 F . s5, 390 F od. s2,895 U e. s2 495 U LowLowLow Co. makes one product. Budgeted unit sales for the next four months are as follows: January = 56,000 units; February = 58,000 units; March = 61,000 units; April = 65,000 units. The ending finished goods inventory equals 20% of the following month's sales. The ending raw materials inventory equals 15% of the following month's raw materials production needs. Each unit of finished goods requires 6 grams of raw materials. The raw materials cost $2.00 per gram. How many grams of raw materials should Low Low Low plan to purchase for February? a. 350,700 grams b. 370,800 grams C. 351,600 grams d. 348,720 grams e. 354,480 grams