Pargo company is preparing its master budget for 2020. relevant data pertaining to its sales, production, and direct materials budgets are as follows. sales. sales for the year are expected to total 1,700,000 units. quarterly sales are 18%, 23%, 24%, and 35%, respectively. the sales price is expected to be $41 per unit for the first three quarters and $43 per unit beginning in the fourth quarter. sales in the first quarter of 2021 are expected to be 15% higher than the budgeted sales for the first quarter of 2020. production. management desires to maintain the ending finished goods inventories at 25% of the next quarter’s budgeted sales volume. direct materials. each unit requires 2 pounds of raw materials at a cost of $12 per pound. management desires to maintain raw materials inventories at 10% of the next quarter’s production requirements. assume the production requirements for first quarter of 2021 are 494,000 pounds. prepare the sales, production, and direct materials budgets by quarters for 2020.

The production manager of rordan corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st quarter 2nd quarter 3rd quarter 4th quarter units to be produced 10,800 8,500 7,100 11,200 each unit requires 0.25 direct labor-hours, and direct laborers are paid $20.00 per hour. required: 1. prepare the company’s direct labor budget for the upcoming fiscal year. assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. 2. prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. instead, assume that the company’s direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 2,500 hours of work each quarter. if the number of required direct labor-hours is less than this number, the workers are paid for 2,500 hours anyway. any hours worked in excess of 2,500 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor.

Zeta corporation is a manufacturer of sports caps, which require soft fabric. the standards for each cap allow 2.00 yards of soft fabric, at a cost of $2.00 per yard. during the month of january, the company purchased 25,000 yards of soft fabric at $2.10 per yard, to produce 12,000 caps. what is zeta corporation's materials price variance for the month of january?

Amanufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. in the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant for $2,100,000. what should the manufacturer do?