In: Accounting
q5: Sunland Company is preparing its direct labor budget for May. Projections for the month are that 33400 units are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $17, what is the total budgeted direct labor cost for May?
1616700. |
1703400. |
1660050. |
2601000. |
q6: Sheffield Corp.is planning to sell 1000 buckets and produce 580 buckets during March. Each bucket requires 300 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 300 grams and employees of the company are paid $10 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Sheffield has 100 kilos of plastic in beginning inventory and wants to have 1000 kilos in ending inventory. How much is the total amount of budgeted direct labor for March?
$10000 |
$58000 |
$2900 |
$20000 |
q7: A company's past experience indicates that 60% of its credit sales are collected in the month of sale, 30% in the next month, and 5% in the second month after the sale; the remainder is never collected. Budgeted credit sales were:
January | $300000 |
February | 156000 |
March | 480000 |
q8:The cash inflow in the month of March is expected to be
$334800. |
$226800. |
$349800. |
$288000. |
Answer to question q5.
Calculation of total budgeted direct labor cost:
Total budgeted direct labor cost = No.of units x No. of hours required per unit x Labor cost per hour
= 33,400 x 3 hrs. x $17
= $1,703,400
Accordingly, Option (2) i.e. $1,703,400 is the correct answer.
Answer to question q6.
Calculation of total budgeted direct labor cost:
Total budgeted direct labor cost = No.of units produced x No. of hours required per unit x Labor cost per hour
= 580 x 1/2 x $10 per hours
= $2,900
Accordingly, Option (3) i.e. $2,900 is the correct answer.
Answer to question q8.
Determination of expected cash inflow in the month of March:
Particulars | Amount | |
Cash related to January sales collected in the march ($300,000 x 5%) | $15,000 | |
Cash related to February sales collected in the march ($156,000 x 30%) | $46,800 | |
Cash related to March Sales collected in the march ($480,000 x 60%) | $288,000 | |
Expected cash collection in the month of March | $349,800 |
Accordingly, Option (3) i.e. $349,800 is the correct answer.