Question

1. Magnolia, Inc. manufactures bedding sets. The budgeted production is for 16,100 comforters this year. Each comforter requires 7 yards of material. The estimated January 1 beginning inventory is 5,970 yards with the desired ending balance of 3,700 yards of material. If the material costs $5.80 per yard, determine the materials budget for the year.
$

2.

Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 626,000 units, estimated beginning inventory is 106,000 units, and desired ending inventory is 86,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.

Material A 0.50 lb. per unit @ $0.67 per pound
Material B 1.00 lb. per unit @ $2.25 per pound
Material C 1.20 lb. per unit @ $1.08 per pound

The dollar amount of Material C used in production during the year is

a.$706,838

b.$942,451

c.$785,376

d.$863,914

3.

The following data relate to direct labor costs for the current period:

Standard costs	6,900 hours at $11.70
Actual costs	6,300 hours at $10.60

What is the direct labor rate variance?

a.$13,950 unfavorable

b.$6,930 favorable

c.$13,950 favorable

d.$7,020 favorable

Answer 1

As per Chegg policy, one question can be asked at a time. So i am giving the answer of first question. Kindly ask the further question's separatly. Thanks.

1. Purchase required = Production required + ending inventory required - beginning inventory

= 16100*7+3700-5970

= 110430 unit

Materials budget for the year = Purchase required*Purchase price per unit

= 110430*5.80

= $640494