Questions 1- 3 (of 3) Save & Exdt Submit The folowing information applies to the questions displayed below. Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $14 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month's sales Ending raw materials inventory should be 30 percent of next month's production. Expected unit sales (frames) for the upcoming months follow 315 330 380 480 455 505 Aprill June July August $7,200 ($600 per Variable manufacturing overhead is incurred at a rate of SOGO per unit produced. Annual fined manufacturing overhead is estimated to be month) for expected production of 3,000 units for the yeer Seling and edminstratv e expenses are estimated at $650 per month plus $0.50 per unit sold cash on hand on April 1 o its sales, 80 percent is in cash, Of the credit sales, 50 percent is collected during the month of the sale, Iguana, Inc., had $11,000 and 50 percent is collected during the month following the sale. purchases for raw materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Raw materials the moeth incurred. Monthly fixed manufacturing overhead includes $230 in depreciation. During incurred. M March 1 totaled $3,000. All other operating costs are paid during Apri, Iguana plans to pay $2,000 for a piece of equipment Required information 1. 33.33 points