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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.
Assume Superflite plans to manufacture 400,000 units in April. Superflite's April budget for the purchase of A-9 should beA. 379,000 units. B. 412,000 units. C. 388,000 units. D. 402,000 units. |