Fallgatter, Inc, expects to sell 17,500 units. Each unit requires 3 pounds of direct materials at $12 per pound and 2 direct labor hours at $10 per direct labor hour. The overhead rate is $8 per direct labor hour. The beginning inventories are as follows: direct materials, 2,000 pounds; finished goods, 2,500 units. The planned ending inventories are as follows: direct materials, 5,600 pounds;
finished goods, 3,000 units. What is the planned production?
a. 15,000
b. 18,000
c. 17,500
d. 17,000
B
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