Velocity Skates is a fictitious company that produces roller skates. As the cost accountants prepare the budget for the upcoming year, they must calculate standard costs. Assume you have received the following bill of materials, which describes the inputs to Velocity Skates's most popular skate, the Speedster: Skate Boot: Leather or synthetic upper material Lining material Insole Outsole Heel 1 $ 10.00 1 $ 1.50 1 $ 1.00 1 $ 3.00 1 $ 2.00 Laces 2 $ 0.50 Chassis: Aluminum or steel frame 1 $ 7.50 Trucks (pivot points for the wheels) 2 $ 5.00 Cushions (rubber parts within the truck for flexibility) Wheels: 4 $ 2.00 Polyurethane wheels 4 $ 3.00 Bearings (allow the wheels to rotate freely) 8 $ 0.50 Toe Stop: Rubber stopper 1 $ 2.00 Washer Nut Miscellaneous: Screws for attaching chassis to boot Bolts for attaching trucks to the frame Nuts for securing bolts Required: 1 $ 0.50 1 $ 0.50 4 $ 0.50 4 $ 0.50 4 $ 0.50 Question a. What is the standard direct materials cost for one pair of speedster skates? b. Assume Velocity Skates plans to produce and sell 50,000 pairs. What is the total standard direct materials cost for the budget? c. Sale price is $275 per skate. Assume fixed costs are $70,000 for the period. Labor is paid $9.00 per hour and on average 10 pairs are produced per hour. Calculate Velocity's planned profit. Answer