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Question 1: Flagstaff Company has budgeted production units of 9,700 for July and 9,900 for August. The direct materials requirement per unit is 2 ounces (oz.). The company has determined that it wants to have safety stock of direct materials on hand at the end of each month to complete 20% of the units budgeted in the following month. There was 3,880 ounces of direct material in inventory at the start of July. The total amount of direct materials in ounces, to be purchased in July is:
Multiple Choice
Option 1: 19,400.
Option 2: 19,800.
Option 3: 23,360.
Option 4: 19,480.
Option 5: 19,320.
Calculate flexible budget variances using actual costs for August. Harvard Business case working on shows an exhibit 3 where the actual amount is subtracted
The manager of the Retailing Division provided the accompanying memo with this report: - Comment on the senior vice president's memo in light of the cash flow information.
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Calculate the equivalent units for direct materials and calculate the cost per equivalent unit for direct materials - Please clearly state your answer
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