Question

At the beginning of the period, the Cutting Department budgeted direct labor of $132,000, direct materials of $152,000 and fixed factory overhead of $10,300 for 7,400 hours of production. The department actually completed 10,700 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting? Round hourly rates to two decimal places.

Round interim calculations to two decimal places. Round your final answer to the nearest dollar.

a.$298,893

b.$294,300

c.$420,966

d.$425,542

If $501,000 of 10% bonds are issued at 96, the amount of cash received from the sale is

a.$480,960

b.$450,900

c.$501,000

d.$551,100

Answer 1

Question

At the beginning of the period, the Cutting Department budgeted direct labor of $132,000, direct materials of $152,000 and fixed factory overhead of $10,300 for 7,400 hours of production. The department actually completed 10,700 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting? Round hourly rates to two decimal places.

Round interim calculations to two decimal places. Round your final answer to the nearest dollar.

Ans : C $ 420 966 ((132000+152000)/7400*10700+$10300)

Question If $501,000 of 10% bonds are issued at 96, the amount of cash received from the sale is

Answer : a $480960

Question

Selected accounts with amounts omitted are as follows:

Work in Process
Aug. 1	Balance	250,200	Aug. 31	Goods finished	123,600
31	Direct materials	X
31	Direct labor	43,000
31	Factory overhead	X

Factory Overhead
Aug. 1 – 31	Costs incurred	97,200	Aug. 1	Balance	13,800
			31	Applied	X

If the balance of Work in Process on August 31 is $208,300, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

Ans C $97200