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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:
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:
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:
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:
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:
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:
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:
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:
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
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:
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
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:
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
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?
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
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:
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
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:
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
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:
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
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?
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:
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:
145. 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.
To attain its desired ending cash balance for April, the company needs to borrow:
146. The Adams Corporation, a merchandising firm, has budgeted its activity for November
according to the following information:
• Sales at $450,000, all for cash.
• Merchandise inventory on October 31 was $200,000.
• The cash balance November 1 was $18,000.
• Selling and administrative expenses are budgeted at $60,000 for November and are paid for in
cash.
• Budgeted depreciation for November is $25,000.
• The planned merchandise inventory on November 30 is $230,000.
• The cost of goods sold is 70% of the selling price.
• All purchases are paid for in cash.
• There is no interest expense or income tax expense.
The budgeted cash receipts for November are:
147. The Adams Corporation, a merchandising firm, has budgeted its activity for November
according to the following information:
• Sales at $450,000, all for cash.
• Merchandise inventory on October 31 was $200,000.
• The cash balance November 1 was $18,000.
• Selling and administrative expenses are budgeted at $60,000 for November and are paid for in
cash.
• Budgeted depreciation for November is $25,000.
• The planned merchandise inventory on November 30 is $230,000.
• The cost of goods sold is 70% of the selling price.
• All purchases are paid for in cash.
• There is no interest expense or income tax expense.
The budgeted cash disbursements for November are:
148. The Adams Corporation, a merchandising firm, has budgeted its activity for November
according to the following information:
• Sales at $450,000, all for cash.
• Merchandise inventory on October 31 was $200,000.
• The cash balance November 1 was $18,000.
• Selling and administrative expenses are budgeted at $60,000 for November and are paid for in
cash.
• Budgeted depreciation for November is $25,000.
• The planned merchandise inventory on November 30 is $230,000.
• The cost of goods sold is 70% of the selling price.
• All purchases are paid for in cash.
• There is no interest expense or income tax expense.
The budgeted net income for November is:
