QUESTION 17 Fab Manufacturing Corporation manufactures and sells stainless steel

ID: 2396899 • Letter: Q

Question

QUESTION 17 Fab Manufacturing Corporation manufactures and sells stainless steelcofe mugs, Expected mug sales at Fab n units) for the next three months are as follows October November December 28.000 25,000 31,000 Fab likes to maintain a finished goods inventory equal to 30% of the next month's estimated sales. How many mugs should Fab plan on producing during the month of November? O 23,200 mugs 0 26,800 mugs O 25,900 mugs 34,300 mugs QUESTION 18 Petersheim Snow Removal's cost formula for its vehicle operating cost is $1,750 per month plus $484 per snow-day For the month of November, the company planned for activity of 15 ?now-days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost for the month was $8,360. The vehicle operating cost in the flexible budget for November would be closest to: $8,526 $8,409 $9.010 $8,360

Explanation / Answer

17.

Ans: 26800 mugs

Explanation:

Budgeted unit sales

25000

Add desired ending finished goods inventory (31,000 × 30%)

9300

Total needs

34300

Less beginning finished goods inventory (25,000 × 30%)

7500

Required production in units

26800