Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct materials requirement per unit is 2 ounces (oz.). The company has determined that it wants to have safety stock of direct materials on hand at the end of each month to complete 20% of the units of budgeted production in the following month. There was 3,160 ounces of direct material in inventory at the start of July. The total cost of direct materials purchases for the July direct materials budget, assuming the materials cost $1.15 per ounce, is:
A. $14,536.
B. $18,170.
C. $21,896.
D. $18,262.
E. $18,078.
Answer: D
You might also like to view...
As a company seeks to establish a category membership designation, how does the company approach points-of-difference? What is done first?
What will be an ideal response?
Which of the following is a factor that the auditor should consider when choosing between non-statistical and statistical sampling?
a. Whether the audit staff is adequately trained to use statistical sampling. b. Whether the population lends itself to a random-based selection method. c. Whether the auditor wants a statistical measure of the risk of drawing a wrong conclusion. d. All of the above.
Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales$36,480,000 Net operating income$2,808,960 Average operating assets$8,000,000 The company's minimum required rate of return 16%The division's turnover used to compute ROI is closest to:
A. 0.35 B. 4.56 C. 12.99 D. 3.37
Which of the following is true of a firm that has high market dependence?
A. Its competitive advantages are more sustainable B. It is likely to respond strongly to attacks threatening its market position. C. Its position helps protect it from attacks by competitors. D. It will respond quickly to any threat to its position.