182) Smith Corporation makes and sells a single product called a Pod. Each Pod requires 1.4
direct labor-hours at $9.60 per direct labor-hour. The direct labor workforce is fully adjusted
each month to the required workload. Smith Corporation is preparing a Direct Labor Budget for
the second quarter of the year.
The budgeted direct labor cost per Pod is closest to:
A) $13.44
B) $9.60
C) $7.38
D) $11.00
183) Smith Corporation makes and sells a single product called a Pod. Each Pod requires 1.4
direct labor-hours at $9.60 per direct labor-hour. The direct labor workforce is fully adjusted
each month to the required workload. Smith Corporation is preparing a Direct Labor Budget for
the second quarter of the year.
In June the company has budgeted to produce 22,000 Pods. Budgeted direct labor costs incurred
in June would be:
A) $470,400
B) $295,680
C) $240,000
D) $211,200
184) Smith Corporation makes and sells a single product called a Pod. Each Pod requires 1.4
direct labor-hours at $9.60 per direct labor-hour. The direct labor workforce is fully adjusted
each month to the required workload. Smith Corporation is preparing a Direct Labor Budget for
the second quarter of the year.
If the budgeted direct labor cost for April is $201,600, then the budgeted production of Pods for
April would be:
A) 21,000 units
B) 29,400 units
C) 18,273 units
D) 15,000 units
185) The LFH Corporation makes and sells a single product, Product T. Each unit of Product T
requires 1.5 direct labor-hours at a rate of $10.50 per direct labor-hour. The direct labor
workforce is fully adjusted each month to the required workload. LFH 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:
A) $9.10
B) $10.50
C) $7.00
D) $15.75
186) The LFH Corporation makes and sells a single product, Product T. Each unit of Product T
requires 1.5 direct labor-hours at a rate of $10.50 per direct labor-hour. The direct labor
workforce is fully adjusted each month to the required workload. LFH Corporation needs to
prepare a Direct Labor Budget for the second quarter of next year.
The company has budgeted to produce 28,000 units of Product T in June. The finished goods
inventories on June 1 and June 30 were budgeted at 800 and 600 units, respectively. Budgeted
direct labor costs for June would be:
A) $294,000
B) $441,000
C) $444,150
D) $437,850
187) The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth
quarter of the year. The budgeted variable manufacturing overhead is $5.00 per direct labor-
hour; the budgeted fixed manufacturing overhead is $75,000 per month, of which $15,000 is
factory depreciation.
If the budgeted direct labor time for November is 7,000 hours, then the total budgeted
manufacturing overhead for November is:
A) $95,000
B) $110,000
C) $75,000
D) $125,000
188) The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth
quarter of the year. The budgeted variable manufacturing overhead is $5.00 per direct labor-
hour; the budgeted fixed manufacturing overhead is $75,000 per month, of which $15,000 is
factory depreciation.
If the budgeted cash disbursements for manufacturing overhead for December total $105,000,
then the budgeted direct labor-hours for December must be:
A) 6,000 direct labor-hours
B) 21,000 direct labor-hours
C) 9,000 direct labor-hours
D) 3,000 direct labor-hours
189) The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth
quarter of the year. The budgeted variable manufacturing overhead is $5.00 per direct labor-
hour; the budgeted fixed manufacturing overhead is $75,000 per month, of which $15,000 is
factory depreciation.
If the budgeted direct labor time for December is 8,000 hours, then average budgeted
manufacturing overhead per direct labor-hour is closest to:
A) $14.38 per direct labor-hour
B) $9.38 per direct labor-hour
C) $12.50 per direct labor-hour
D) $16.25 per direct labor-hour
190) Avril Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The
variable overhead rate is $4.60 per direct labor-hour. The company’s budgeted fixed
manufacturing overhead is $54,080 per month, which includes depreciation of $3,840. All other
fixed manufacturing overhead costs represent current cash flows. The direct labor budget
indicates that 3,200 direct labor-hours will be required in October.
The October cash disbursements for manufacturing overhead on the manufacturing overhead
budget should be:
A) $68,800
B) $64,960
C) $14,720
D) $50,240
191) Avril Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The
variable overhead rate is $4.60 per direct labor-hour. The company’s budgeted fixed
manufacturing overhead is $54,080 per month, which includes depreciation of $3,840. All other
fixed manufacturing overhead costs represent current cash flows. The direct labor budget
indicates that 3,200 direct labor-hours will be required in October.
The company recomputes its predetermined overhead rate every month. The predetermined
overhead rate for October should be:
A) $4.60 per direct labor-hour
B) $21.50 per direct labor-hour
C) $20.30 per direct labor-hour
D) $16.90 per direct labor-hour
192) The manufacturing overhead budget at Polich Corporation is based on budgeted direct
labor-hours. The direct labor budget indicates that 1,600 direct labor-hours will be required in
February. The variable overhead rate is $3.40 per direct labor-hour. The company’s budgeted
fixed manufacturing overhead is $28,320 per month, which includes depreciation of $3,680. All
other fixed manufacturing overhead costs represent current cash flows.
The company recomputes its predetermined overhead rate every month. The predetermined
overhead rate for February should be:
A) $3.40 per direct labor-hour
B) $21.10 per direct labor-hour
C) $17.70 per direct labor-hour
D) $18.80 per direct labor-hour
193) The manufacturing overhead budget at Polich Corporation is based on budgeted direct
labor-hours. The direct labor budget indicates that 1,600 direct labor-hours will be required in
February. The variable overhead rate is $3.40 per direct labor-hour. The company’s budgeted
fixed manufacturing overhead is $28,320 per month, which includes depreciation of $3,680. All
other fixed manufacturing overhead costs represent current cash flows.
The February cash disbursements for manufacturing overhead on the manufacturing overhead
budget should be:
A) $24,640
B) $33,760
C) $30,080
D) $5,440
194) Davis Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of
the year. The budgeted variable manufacturing overhead rate is $1.70 per direct labor-hour; the
budgeted fixed manufacturing overhead is $116,000 per month, of which $30,000 is factory
depreciation.
If the budgeted direct labor time for October is 8,000 hours, then the total budgeted
manufacturing overhead for October is:
A) $129,600
B) $43,600
C) $99,600
D) $86,000
195) Davis Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of
the year. The budgeted variable manufacturing overhead rate is $1.70 per direct labor-hour; the
budgeted fixed manufacturing overhead is $116,000 per month, of which $30,000 is factory
depreciation.
If the budgeted direct labor time for November is 7,000 hours, then the total budgeted cash
disbursements for manufacturing overhead for November must be:
A) $41,900
B) $127,900
C) $86,000
D) $97,900
196) Davis Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of
the year. The budgeted variable manufacturing overhead rate is $1.70 per direct labor-hour; the
budgeted fixed manufacturing overhead is $116,000 per month, of which $30,000 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:
A) $9.20
B) $30.70
C) $23.20
D) $1.70
197) The Puyer 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
$
0.90
Shipping
$
1.40
Advertising
$
50,000
$
0.20
Executive salaries
$
60,000
Depreciation on office equipment
$
20,000
Other
$
40,000
–
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 January, then the total budgeted variable
selling and administrative expenses for January will be:
A) $17,600
B) $25,600
C) $40,000
D) $36,800
Sales commissions
Shipping
Advertising
Total
–
198) The Puyer 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
$
0.90
Shipping
$
1.40
Advertising
$
50,000
$
0.20
Executive salaries
$
60,000
Depreciation on office equipment
$
20,000
Other
$
40,000
–
All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the company has budgeted to sell 15,000 Debs in February, then the total budgeted fixed
selling and administrative expenses for February is:
A) $120,000
B) $130,000
C) $150,000
D) $170,000
Cost
Advertising
Executive salaries
Depreciation on office equipment
Other
Total
–
199) The Puyer 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
$
0.90
Shipping
$
1.40
Advertising
$
50,000
$
0.20
Executive salaries
$
60,000
Depreciation on office equipment
$
20,000
Other
$
40,000
–
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 March, then the average budgeted selling and
administrative expenses per unit sold for March is closest to:
A) $12.50 per unit
B) $2.50 per unit
C) $10.00 per unit
D) $17.00 per unit
200) The Puyer 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
$
0.90
Shipping
$
1.40
Advertising
$
50,000
$
0.20
Executive salaries
$
60,000
Depreciation on office equipment
$
20,000
Other
$
40,000
–
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
$195,500, then how many Debs does the company plan to sell in April?
A) 14,400 units
B) 8,000 units
C) 10,200 units
D) 18,200 units