Question

In: Accounting

Northcutt's production data for a new deluxe product were taken from the most recent quarterly production...

Northcutt's production data for a new deluxe product were taken from the most recent quarterly production budget:

July August September
  Planned production in units 750     850     730    


In addition, Northcutt produces 4,500 units a month of its standard product. It takes 2 direct labor hours to produce each standard unit and 2.50 direct labor hours to produce each deluxe unit. Northwest's cost per labor hour is $15. Direct labor cost for August would be budgeted at:

$166,875.

$163,125.

$191,250.

$194,250.

Some other amount.

Northcutt's production data for a new deluxe product were taken from the most recent quarterly production budget:
   

July August September
  Planned production in units 850       950       830      


In addition, Northcutt produces 4,700 units a month of its standard product. It takes 2 direct labor hours to produce each standard unit and 2.50 direct labor hours to produce each deluxe unit. Northwest's cost per labor hour is $14. Direct labor cost for the quarter would be budgeted at:

$451,425.

$466,025.

$480,100.

$486,850.

Some other amount.

Quattro began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for April, May, and June were $58,000, $78,000, and $68,000, respectively, what were the firm's budgeted collections for April?

$17,400.

$20,400.

$58,200.

$40,600.

Some other amount.

Solutions

Expert Solution

Q1.
Answer is $ 166,875
Explanation:
Budgeted labour cost:
labour hours required for New deluxe (850*2.50) 2125
Labour hours fr Standard (4500*2) 9000
Budgetd labour hours 11125
Labour rate per hour 15
Budgeted labour cost: 166875
Q2.
Answer is $486,850
Explanation:
LABOUR COST BUDGETS
July Aug Sep QUARTER-4
Deluxe units produced 850 950 830 2,630
Standard units produced 4,700 4,700 4,700 14,100
Hours required for deluxe @2.50 2,125 2,375 2,075 6,575
labour req for standard @2 hour 9400 9400 9400 28200
Labour hours 11525 11775 11475 34775
Labuor Rate per hour 14 14 14 14
Budgeted Labour cost in $ 161,350 164,850 160,650 486,850
Q3.
Answer is $17400
Explanation:
April colections:
April sales 58000
Collection in the month of sale 30%
Budgeted collection for April 17400

ekkarill92 answered 2 years ago
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