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