The flexible formula is fixed costs $$50,000$ plus variable cost of $$4$ per direct labor hour. What is the budgeted cost at $($a$)9,000$ hours and $($b$)12,345$ hours? Perine Company has $2,392$ pounds of raw materials in its December $31,2019,$ ending inventory. Required production for January and February of $2020$ are $4,600$ and $6,000$ units, respectively. $2$ pounds of raw materials are needed for each unit, and the estimated cost per pound is $\backslash (\backslash$$ $9\backslash ).$ Management desires an ending inventory equal to $\backslash (26\backslash \%\backslash )$ of next month's materials requirements.

Prepare the direct materials budget for January.

PERINE COMPANY

Direct Materials Budget

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