Review Questions Assignment Example | Topics and Well Written Essays - 250 words

Review Questions - Assignment Example The remainder is uncollectible. The following are the budgeted sales: 3) Micro Company plans to sell 12,000 units during August. If the company has 2,500 units on hand at the start of the month, and plans to have 2,000 units on hand at the end of the month, how many units must be produced during the month? Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter’s production needs. Budgeted purchases of raw materials in the third quarter would be: 5) The Broom Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.05 direct-labor hours. The direct labor rate is $7.50 per direct labor hour. The production budget calls for producing 9,100 units in May and 8,800 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? 6) MRI bases its manufacturing overhead budget on budgeted direct labor hours. The direct labor budget indicates that 5400 direct labor hours will be required in January. The variable overhead rate is $4.40 per direct labor hour. The company’s budgeted fixed manufacturing overhead is $77,220 per month, which includes depreciation of $9,720. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: 7) The manufacturing overhead budget for Fanasta Company is based on budgeted direct labor hours. The direct labor budget indicates that 1,600 direct labor hours will be required in December. The variable overhead rate is $4.40 per direct labor hour. The company’s budgeted fixed manufacturing overhead is $25,120 per month, which includes appreciation of