MC TOOLS makes hammers. The requirements to make 1 hammer are:

Materials .5 pounds at a cost of $9 per pound

Labor 15 minutes per hammer at a cost of $10 per hours

Variable Overhead is assigned at 25% of labor and fixed overhead is $140,000 monthly

MC TOOLS sales in March were 500,000 units

Projected Sales are:

An increase of 1% in April (from march sales)

May sales projection are 510,000 units

MC TOOLS finished goods inventory policy is to keep in inventory 40% of next month sales. Actual inventory is 190,000 units. MC TOOLS raw materials inventory policy is to keep in inventory 50% of next month production. Actual inventory is 260,000 pounds. April production is expected to be 510,000 units

REQUIRED:

A. CALCULATE UNITS TO PRODUCE IN APRIL

B. CALCULATE DIRECT MATERIALS COST IN APRIL

C. CALCULATE DIRECT LABOR COST IN APRIL

D. CALCULATE TOTAL OVERHEAD COST IN APRIL

E. CALCULATE PRODUCT COST IN APRIL