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Question - Young Co. makes computers. They have 440 computers on hand Jan 1st. Their goal is to have 5% of next month's sales on hand at the end of each month. Sales budget is shown below:
Jan sales, units 20,000
Feb sales, units 39,000
Mar sales, units 40,000
What is the production budget for February (in units)?
Conceptual Connection: Compute the materials price and usage variances. Assume that the 0.25 pound per can reduction of materials occurred as expected.
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Budgets for production and direct manufacturing labor
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