Use the following information to answer question 1-4. A company has budgeted production for next year as follows: Quarter First Second Third Fourth Production in units 6,000 8,000 9,000 7,000 3 pounds of material are required for each unit produced. The company has a policy of maintaining an inventory of material on hand at the end of each quarter equal to 25% of the next quarter's production needs for material. A total of 3,000 pounds of material are on hand at the beginning of the year. Each pound of material costs $5. Each unit produced requires 1.35 direct labor-hours. The direct labor rate is $9.40 per direct labor-hour. Manufacturing overhead budget is determined based on budgeted direct labor-hours. The variable overhead rate is $1.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,440 per quarter, which includes depreciation of $8,910. All other fixed manufacturing overhead costs represent current cash flows. 1. Budgeted purchases of material for the third quarter would be: 2. A. 8,250 pounds B. 16,500 pounds C. 20,000 pounds D. 25,500 pounds E. 32,250 pounds The second quarter's cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: A. $102,870 B. $113,400 C. $106,650 D. $111,780 E. $91,530 3. The budgeted conversion costs for next year should be: 4. A. $803,520 B. $839,160 C. $458,460 D. $537,840 E. $528,930 The budgeted cost per unit produced in the next year is best estimated to be: A. $27.97. B. $42.97. C. $15.28 D. $41.78 E. $28.76