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Superflite expects April sales of its deluxe model airplane, the C-14, to be 402,000 units at $11 each. Each C-14 requires three purchased components shown below.
Factory direct labor and variable overhead per unit of C-14 totals $3.00. Fixed factory overhead is $1.00 per unit at a production level of 500,000 units. Superflite plans the following beginning and ending inventories for the month of April and uses standard absorption costing for valuing inventory.
The C-14 production budget for April should be based on the manufacture ofA. 402,000 units. B. 424,000 units. C. 390,000 units. D. 400,000 units. |