( TCO 1 ) For each of the following drivers identify an appropriate activity .
a . # of machines b . # of setups c . # of inspections d . # of orders e . # of runs f . # of bins or aisles g . # of engineers 2 . Question : ( TCO 2 ) Favata Company has the following information : Month Budgeted Sales June $ 60,000 July 51,000 August 40,000 September 70,000 October 72,000
In addition , the cost of goods sold rate is 70 % and the desired inventory level is 30 % of next month ' s cost of sales .
Prepare a purchases budget for July through September . 3 . Question :
( TCO 3 ) Patrick Ross , the president of Ross ' s Wild Game Company , has asked for information about the cost behavior of manufacturing overhead costs . Specifically , he wants to know how much overhead