Robust Resources Expects to Sell 440 Units of Product a and 400

question 78

Multiple Choice

Robust Resources expects to sell 440 units of Product A and 400 units of Product B each day at an average price of $18 for Product A and $27 for Product B.The expected cost for Product A is 40% of its selling price and the expected cost for Product B is 64% of its selling price.Robust Resources has no beginning inventory,but it wants to have a three-day supply of ending inventory for each product.Compute the company's budgeted sales for the next (seven-day) week.(Round the answer to the nearest dollar.)

• A)$10,080
• B)$56,160
• C)$131,040
• D)$18,720

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Definitions:

Direct Materials Price Variance

The difference between the actual cost and the standard cost of direct materials used in production, indicating how effectively the materials budget is being adhered to.

Per-Unit Standards

Estimates of the direct materials, direct labor, and manufacturing overhead costs required to produce one unit of a product.

Direct Labor Price Variance

The difference between the actual cost of direct labor and the expected (or standard) cost of direct labor used during production.

Direct Labor Payroll

The total amount of money paid to employees directly involved in manufacturing products or providing services.