The following are budgeted data: One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. Required: What should purchases of raw materials for February be budgeted to be? Required: Compute the activity rates for each of the three cost pools; show your work.

Sales in units Production in units January February March 16.000 21,000 000 17.000 19.000 18,000