What is the budgeted level of sales for month of february

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Reference no: EM131701669

Question - The Super Bowl Company makes and sells glass bowls. At the beginning of the year, the company has established the following monthly cost information regarding the production of their bowls:

  • Direct Materials: 4 ounces per unit at $3.00 per ounce
  • Direct Labor: 2 hours per unit at $10.00 per hour
  • Manufacturing Overhead Rate: $0.25 per DL dollar
  • Administrative Expenses (Salaries): $3,000 per month
  • Bad debt expense: 5% of credit sales
  • Shipping expenses (to customers): $1.00 per bowl
  • Sales commissions: $4.00 per bowl
  • Depreciation: $500 per month
  • Selling price: $60 per bowl

The company also anticipates the following unit sales budgeted for the first four months of the year:

January

February

March

April

May

1,000

1,400

1,600

1,500

2,000

Based on the sales budget, what is the budgeted level of sales (in dollars) for the month of February?

a. $60,000

b. $84,000

c. $90,000

d. $96,000

Reference no: EM131701669

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