121.
The Gerald Corporation makes and sells a single product called a Clop. Each Clop requires
1.1 direct labor-hours at $8.20 per direct labor-hour. The direct labor workforce is fully
adjusted each month to the required workload. The company is preparing a Direct Labor
Budget for the first quarter of the year.
If the company has budgeted to produce 20,000 Clops in January, then the budgeted direct
labor cost for January is:
122.
The Gerald Corporation makes and sells a single product called a Clop. Each Clop requires
1.1 direct labor-hours at $8.20 per direct labor-hour. The direct labor workforce is fully
adjusted each month to the required workload. The company is preparing a Direct Labor
Budget for the first quarter of the year.
If the budgeted direct labor cost for February is $162,360, then the budgeted production of
Clops for February is:
123.
The LFG Corporation makes and sells a single product, Product T. Each unit of Product T
requires 1.4 direct labor-hours at a rate of $9.80 per direct labor-hour. The direct labor
workforce is fully adjusted each month to the required workload. LFG Corporation needs to
prepare a Direct Labor Budget for the second quarter of next year.
The budgeted direct labor cost per unit of Product T is closest to:
124.
The LFG Corporation makes and sells a single product, Product T. Each unit of Product T
requires 1.4 direct labor-hours at a rate of $9.80 per direct labor-hour. The direct labor
workforce is fully adjusted each month to the required workload. LFG Corporation needs to
prepare a Direct Labor Budget for the second quarter of next year.
The company has budgeted to produce 24,000 units of Product T in June. The finished goods
inventories on June 1 and June 30 were budgeted at 600 and 800 units, respectively.
Budgeted direct labor costs for June would be:
125.
The Covey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter
of the year. The budgeted variable manufacturing overhead rate is $4.00 per direct labor-hour;
the budgeted fixed manufacturing overhead is $64,000 per month, of which $18,000 is factory
depreciation.
If the budgeted direct labor time for October is 8,000 hours, then the total budgeted
manufacturing overhead for October is:
126.
The Covey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter
of the year. The budgeted variable manufacturing overhead rate is $4.00 per direct labor-hour;
the budgeted fixed manufacturing overhead is $64,000 per month, of which $18,000 is factory
depreciation.
If the budgeted cash disbursements for manufacturing overhead for November are $90,000,
then the budgeted direct labor-hours for November must be:
127.
The Covey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter
of the year. The budgeted variable manufacturing overhead rate is $4.00 per direct labor-hour;
the budgeted fixed manufacturing overhead is $64,000 per month, of which $18,000 is factory
depreciation.
If the budgeted direct labor time for December is 4,000 hours, then the average budgeted
manufacturing overhead per direct labor-hour is:
7-185
128.
Cartier Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The
variable overhead rate is $5.80 per direct labor-hour. The company’s budgeted fixed
manufacturing overhead is $39,930 per month, which includes depreciation of $12,870. All
other fixed manufacturing overhead costs represent current cash flows. The direct labor
budget indicates that 3,300 direct labor-hours will be required in April.
The April cash disbursements for manufacturing overhead on the manufacturing overhead
budget should be:
7-186
129.
Cartier Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The
variable overhead rate is $5.80 per direct labor-hour. The company’s budgeted fixed
manufacturing overhead is $39,930 per month, which includes depreciation of $12,870. All
other fixed manufacturing overhead costs represent current cash flows. The direct labor
budget indicates that 3,300 direct labor-hours will be required in April.
The company recomputes its predetermined overhead rate every month. The predetermined
overhead rate for April should be:
7-187
130.
Davey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of
the year. The budgeted variable manufacturing overhead rate is $3.00 per direct labor-hour;
the budgeted fixed manufacturing overhead is $66,000 per month, of which $10,000 is factory
depreciation.
If the budgeted direct labor time for October is 6,000 hours, then the total budgeted
manufacturing overhead for October is:
7-188
131.
Davey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of
the year. The budgeted variable manufacturing overhead rate is $3.00 per direct labor-hour;
the budgeted fixed manufacturing overhead is $66,000 per month, of which $10,000 is factory
depreciation.
If the budgeted direct labor time for November is 9,000 hours, then the total budgeted cash
disbursements for manufacturing overhead for November must be:
7-189
132.
Davey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of
the year. The budgeted variable manufacturing overhead rate is $3.00 per direct labor-hour;
the budgeted fixed manufacturing overhead is $66,000 per month, of which $10,000 is factory
depreciation.
If the budgeted direct labor time for December is 4,000 hours, then the predetermined
manufacturing overhead per direct labor-hour for December would be:
7-190
133.
The manufacturing overhead budget at Cardera Corporation is based on budgeted direct
labor-hours. The direct labor budget indicates that 2,300 direct labor-hours will be required in
January. The variable overhead rate is $1.00 per direct labor-hour. The company’s budgeted
fixed manufacturing overhead is $28,060 per month, which includes depreciation of $4,600. All
other fixed manufacturing overhead costs represent current cash flows.
The company recomputes its predetermined overhead rate every month. The predetermined
overhead rate for January should be:
7-191
134.
The manufacturing overhead budget at Cardera Corporation is based on budgeted direct
labor-hours. The direct labor budget indicates that 2,300 direct labor-hours will be required in
January. The variable overhead rate is $1.00 per direct labor-hour. The company’s budgeted
fixed manufacturing overhead is $28,060 per month, which includes depreciation of $4,600. All
other fixed manufacturing overhead costs represent current cash flows.
The January cash disbursements for manufacturing overhead on the manufacturing overhead
budget should be:
7-192
135.
Poriss Corporation makes and sells a single product called a Yute. The company is in the
process of preparing its Selling and Administrative Expense Budget for the last quarter of the
year. The following budget data are available:
Variable Cost Per Yute Sold
Monthly Fixed Cost
Sales commissions
$2.10
Shipping
$3.90
Advertising
$7.40
$34,000
Executive salaries
$198,000
Depreciation on office equipment
$10,000
Other
$0.60
$38,000
Sales commissions
Shipping
Advertising
Executive salaries
Depreciation on office equipment
Other
Total
All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the company has budgeted to sell 19,000 Yutes in November, then the total budgeted
selling and administrative expenses for November would be:
7-193
136.
Poriss Corporation makes and sells a single product called a Yute. The company is in the
process of preparing its Selling and Administrative Expense Budget for the last quarter of the
year. The following budget data are available:
Variable Cost Per Yute Sold
Monthly Fixed Cost
Sales commissions
$2.10
Shipping
$3.90
Advertising
$7.40
$34,000
Executive salaries
$198,000
Depreciation on office equipment
$10,000
Other
$0.60
$38,000
Sales commissions
Shipping
Advertising
Executive salaries
Depreciation on office equipment
Other
Total
Budgeted unit sales
Variable selling and administrative
Fixed selling and administrative
280,000
Total selling and administrative
Less depreciation
10,000
All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the company has budgeted to sell 16,000 Yutes in December, then the budgeted total cash
disbursements for selling and administrative expenses for December would be:
7-194
137.
Poriss Corporation makes and sells a single product called a Yute. The company is in the
process of preparing its Selling and Administrative Expense Budget for the last quarter of the
year. The following budget data are available:
Variable Cost Per Yute Sold
Monthly Fixed Cost
Sales commissions
$2.10
Shipping
$3.90
Advertising
$7.40
$34,000
Executive salaries
$198,000
Depreciation on office equipment
$10,000
Other
$0.60
$38,000
Sales commissions
Shipping
Executive salaries
Depreciation on office equipment
Total
All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the total budgeted selling and administrative expense for October is $459,200, then how
many Yutes does the company plan to sell in October?
7-195
138.
The Prattle Corporation makes and sells only one product called a Deb. The company is in the
process of preparing its Selling and Administrative Expense Budget for next year. The
following budget data are available:
Monthly
Fixed Cost
Variable Cost
Per Deb Sold
Sales commissions
$0.80
Shipping
$1.20
Advertising
$40,000
$0.30
Executive salaries
$35,000
Depreciation on
office equipment
$10,000
Other
$25,000
Sales commissions
Shipping
Advertising
Total
All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the company has budgeted to sell 17,000 Debs in January, then the total budgeted variable
selling and administrative expenses for January will be:
7-196
139.
The Prattle Corporation makes and sells only one product called a Deb. The company is in the
process of preparing its Selling and Administrative Expense Budget for next year. The
following budget data are available:
Monthly
Fixed Cost
Variable Cost
Per Deb Sold
Sales commissions
$0.80
Shipping
$1.20
Advertising
$40,000
$0.30
Executive salaries
$35,000
Depreciation on
office equipment
$10,000
Other
$25,000
Advertising
Executive salaries
Depreciation on office equipment
Other
Total
All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the company has budgeted to sell 16,000 Debs in February, then the total budgeted fixed
selling and administrative expenses for February is:
7-197
140.
The Prattle Corporation makes and sells only one product called a Deb. The company is in the
process of preparing its Selling and Administrative Expense Budget for next year. The
following budget data are available:
Monthly
Fixed Cost
Variable Cost
Per Deb Sold
Sales commissions
$0.80
Shipping
$1.20
Advertising
$40,000
$0.30
Executive salaries
$35,000
Depreciation on
office equipment
$10,000
Other
$25,000
Sales commissions
Shipping
Advertising
Executive salaries
Depreciation on
Other
Total
All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the company has budgeted to sell 20,000 Debs in March, then the average budgeted selling
and administrative expenses per unit sold for March is closest to:
7-198
141.
The Prattle Corporation makes and sells only one product called a Deb. The company is in the
process of preparing its Selling and Administrative Expense Budget for next year. The
following budget data are available:
Monthly
Fixed Cost
Variable Cost
Per Deb Sold
Sales commissions
$0.80
Shipping
$1.20
Advertising
$40,000
$0.30
Executive salaries
$35,000
Depreciation on
office equipment
$10,000
Other
$25,000
Sales commissions
Shipping
Advertising
Executive salaries
Depreciation on office equipment
Other
Total
All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the budgeted cash disbursements for selling and administrative expenses for April total
$144,390, then how many Debs does the company plan to sell in April?
7-199
142.
Rogers Corporation is preparing its cash budget for July. The budgeted beginning cash
balance is $25,000. Budgeted cash receipts total $141,000 and budgeted cash disbursements
total $139,000. The desired ending cash balance is $30,000.
The excess (deficiency) of cash available over disbursements for July is:
143.
Rogers Corporation is preparing its cash budget for July. The budgeted beginning cash
balance is $25,000. Budgeted cash receipts total $141,000 and budgeted cash disbursements
total $139,000. The desired ending cash balance is $30,000.
To attain its desired ending cash balance for July, the company should borrow:
7-200
144.
Muecke Inc. is working on its cash budget for April. The budgeted beginning cash balance is
$40,000. Budgeted cash receipts total $150,000 and budgeted cash disbursements total
$158,000. The desired ending cash balance is $50,000.
The excess (deficiency) of cash available over disbursements for April will be: