Noah Corp. needs 3 lbs. of materials for every unit that they produce. Noah pays $1.50 per pound. It is estimated that sales will be 5,000 units in June and 6,000 units in July, and required production for June is estimated to be 5,200 units. July's required production is estimated to be 5,900 units. Noah likes to have 10% of next month's raw materials in inventory the period before they are needed. The raw materials balance on May 31 is 600 lbs. What is the total cost of raw materials to be purchased in June?

• A. $25,155
• B. $7,500
• C. $7,785
• D. $22,500

For the year, there are 6,000 budgeted direct labor hours. The variable overhead rate is estimated to be $8/direct labor hour. Fixed manufacturing overhead is $36,000 for the year, which includes $4,000 of depreciation. What is the budgeted predetermined overhead rate?

• A. $8 per direct labor hour
• B. $13.33 per direct labor hour
• C. $14.67 per direct labor hour
• D. $14 per direct labor hour

Ortiz Company estimates the following sales for 2021:

Q1 - 200 units

Q2 - 260 units

Q3 - 330 units

Q4 - 300 units

Ortiz Company likes to have 5% of their production needs for next quarter in ending inventory the period before they are needed. At the end of 2021, Ortiz would like to have 12 units in finished goods inventory. On January 1, 2021, there are 15 units in finished goods inventory. What is required production for Q1 of 2021?

• A. 201 units
• B. 202 units
• C. 228 units
• D. 198 units