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Question - Prester Corporation has budgeted production for next year as follows:
Quarter First Second Third Fourth Production in units 71,400 97,800 103,500 115,500
Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 35,900 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:
198,450 pounds
195,600 pounds
247,350 pounds
192,750 pounds
Compute the monthly operating income for January, February, and March under absorption costing. What amount of bonus is paid each month to Franz Holzhausen?
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