The following are budgeted data:

	January			February		March
Sales in units	16,600			23,200		19,600
Production in units	19,600			20,600		19,300

One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 25% of the following month's production needs. Purchases of raw materials for February would be budgeted to be:

Garrison 16e Rechecks 2017-10-03

Multiple Choice

20,925 pounds

20,575 pounds

20,275 pounds

18,325 pounds

,

Depasquale Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.61 direct labor-hours. The direct labor rate is $8.70 per direct labor-hour. The production budget calls for producing 6,700 units in May and 7,100 units in June. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?

Multiple Choice

$35,556.90

$37,679.70

$36,618.30

$73,236.60