Sheffield Corp. is planning to sell 1300 boxes of ceramic tile, with production estimated at...
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Sheffield Corp. is planning to sell 1300 boxes of ceramic tile, with production estimated at 1270 boxes during May. Each box of tile requires 40 pounds of clay mix and a 0.25 hour of direct labor. Clay mix costs $ 0.30 per pound and employees of the company are paid $ 12 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Sheffield has 3700 pounds of clay mix in beginning inventory and wants to have 5400 pounds in ending inventory. What is the budgeted amount of direct materials to be purchased (in pounds) for the month?
1)2500
2)50800
3)53700
4)49100
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