Fallgatter, Inc

Multiple Choice

Fallgatter, Inc., expects to sell 18,000 units. Each unit requires 3 pounds of direct materials at $12 per pound and 2 direct labor hours at $10 per direct labor hour. The overhead rate is $8 per direct labor hour. The beginning inventories are as follows: direct materials, 2,000 pounds; finished goods, 2,500 units. The planned ending inventories are as follows: direct materials, 3,900 pounds; finished goods, 3,000 units. Given a planned production of 10,000 units, what are the planned direct materials purchases?

A) $310,800
B) $274,800
C) $346,800
D) $382,800