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Exam 8: Master Budgeting

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Question 31

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Depasquale Corporation is working on its direct labor budget for the next two months.Each unit of output requires 0.41 direct labor-hours.The direct labor rate is $8.10 per direct labor-hour.The production budget calls for producing 5,000 units in May and 5,400 units in June.If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?

A) $16,605.00
B) $17,933.40
C) $17,269.20
D) $34,538.40

E) B) and C)
F) All of the above

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Question 32

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The total number of units produced in July should be:

A) 5,300 units
B) 6,365 units
C) 5,570 units
D) 5,030 units

E) A) and D)
F) None of the above

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Question 33

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The excess (deficiency) of cash available over disbursements for January is:

Corvi Corporation produces and sells one product.The budgeted selling price per unit is $126.Budgeted unit sales are shown below: All sales are on credit with 40% collected in the month of the sale and 60% in the following month.The expected cash collections for August is closest to:

The budgeted accounts receivable balance at the end of May is closest to:

At March 31 Streuling Enterprises, a merchandising firm, had an inventory of 38,000 units, and it had accounts receivable totaling $85,000.Sales, in units, have been budgeted as follows for the next four months: Streuling's board of directors has established a policy to commence in April that the inventory at the end of each month should contain 40% of the units required for the following month's budgeted sales. The selling price is $2 per unit.One-third of sales are paid for by customers in the month of the sale, the balance is collected in the following month. Required: a.Prepare a merchandise purchases budget showing how many units should be purchased for each of the months April, May, and June. b.Prepare a schedule of expected cash collections for each of the months April, May, and June.

Stefanovich Corporation makes one product.The company has provided the following information concerning its raw materials needs: The ending raw materials inventory should equal 20% of the following month's raw materials production needs. Each unit of finished goods requires 2 pounds of raw materials. The raw materials cost $3.00 per pound. The company will need 26,440 pounds of raw material to satisfy production needs in March. The raw materials inventory balance at the end of February should be closest to:

The budgeted direct labor cost per unit of Product WZ would be:

Brockney Inc.bases its manufacturing overhead budget on budgeted direct labor-hours.The variable overhead rate is $8.60 per direct labor-hour.The company's budgeted fixed manufacturing overhead is $107,970 per month, which includes depreciation of $9,760.All other fixed manufacturing overhead costs represent current cash flows.The July direct labor budget indicates that 6,100 direct labor-hours will be required in that month. Required: a.Determine the cash disbursements for manufacturing overhead for July. b.Determine the predetermined overhead rate for July.

Parwin Corporation plans to sell 23,000 units during August.If the company has 8,000 units on hand at the start of the month, and plans to have 9,000 units on hand at the end of the month, how many units must be produced during the month?

If the budgeted direct labor time for December is 8,000 hours, then average budgeted manufacturing overhead per direct labor-hour is closest to:

In Acti's budgeted balance sheet at December 31, at what amount will accounts payable for raw materials be shown?

Kesselring Corporation makes one product and has provided the following information to help prepare the master budget for the next three months of operations: The ending finished goods inventory should equal 40% of the following month's sales. The budgeted finished goods inventory balance at the end of August is closest to:

If the budgeted direct labor cost for April is $201,600, then the budgeted production of Pods for April would be:

Hennagir Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Credit sales are collected: 40% in the month of the sale 60% in the following month Raw materials purchases are paid: 30% in the month of purchase 70% in the following month The ending finished goods inventory should equal 10% of the following month's sales.The ending raw materials inventory should equal 40% of the following month's raw materials production needs. Required: a.What are the budgeted sales for February? b.What are the expected cash collections for February? c.What is the budgeted accounts receivable balance at the end of February? d.According to the production budget, how many units should be produced in February? e.If 32,400 pounds of raw materials are needed for production in March, how many pounds of raw materials should be purchased in February? f.What is the estimated cost of raw materials purchases for February? g.If the cost of raw material purchases in January is $145,680, then in February what are the total estimated cash disbursements for raw materials purchases? h.What is the estimated accounts payable balance at the end of February? i.What is the estimated raw materials inventory balance at the end of February? j.What is the total estimated direct labor cost for February assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced?

The estimated direct labor cost for November is closest to:

Wasilko Corporation produces and sells one product. a.The budgeted selling price per unit is $114.Budgeted unit sales for February is 9,900 units. B.Each unit of finished goods requires 6 pounds of raw materials.The raw materials cost $4.00 per pound. C.The direct labor wage rate is $24.00 per hour.Each unit of finished goods requires 2.4 direct labor-hours. D.Manufacturing overhead is entirely variable and is $9.00 per direct labor-hour. E.The variable selling and administrative expense per unit sold is $1.60.The fixed selling and administrative expense per month is $70,000. The estimated net operating income (loss) for February is closest to:

The budgeted required production for November is closest to:

Vinall Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Credit sales are collected: 30% in the month of the sale 70% in the following month Raw materials purchases are paid: 20% in the month of purchase 80% in the following month The ending finished goods inventory should equal 20% of the following month's sales.The ending raw materials inventory should equal 20% of the following month's raw materials production needs. Required: a.What are the budgeted sales for August? b.What are the expected cash collections for August? c.According to the production budget, how many units should be produced in August? d.If 20,960 pounds of raw materials are needed for production in September, how many pounds of raw materials should be purchased in August? e.What is the estimated cost of raw materials purchases for August? f.If the cost of raw material purchases in July is $40,688, then in August what are the total estimated cash disbursements for raw materials purchases? g.What is the total estimated direct labor cost for August assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced?

The budgeted direct labor cost per unit of Product T is closest to: