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Question 37 3.75 pts Big Quality Plus provides the following sales forecast for the next three months: Sales Units July 5,000 August 5.700 September 5,560 The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. The finished goods inventory on June 30 is 1.250 units. The budgeted production units for July are: 6,250 units 6.425 units 2.500 units 5.175 units 3.750 units D Question 38 3.75 pts Widget has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials price variance is: Direct materials standard (7kg @ $2/kg $14 per finished unit The actual cost of materials purchased $322,500 Actual direct materials purchased and used 150,000 kgs $22.500 unfavorable. $27.500 unfavorable $50,000 favorable $22.500 favorable $50,000 unfavorable. Question 39 3.75 pts ABC manufactures a specialty food product that can currently be sold for $22 per unit and has 20,000 units on hand. Alternatively, it can be further processed at a cost of $12,000 and converted into 12,000 units of Deluxe and 6,000 units of Super. The selling price of Deluxe and Super are $30 and $20, respectively. The incremental net income of processing further would be: $28.000 $44,000 $28.570 $18,500