1. Teller Co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $12.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Teller has 3,900 pounds of clay mix in beginning inventory and wants to have 4,500 pounds in ending inventory.
What is the total amount to be budgeted for manufacturing overhead for the month?
Select one:
a. $11,484
b. $2,871
c. $11,880
d. $2,970
2. Haft Construction Company determines that 54,000 pounds of direct materials are needed for production in July. There are 3,200 pounds of direct materials on hand at July 1 and the desired ending inventory is 2,800 pounds. If the cost per unit of direct materials is $3, what is the budgeted total cost of direct materials purchases?
Select one:
a. $165,600
b. $160,800
c. $163,200
d. $158,400
3. Dolce Co. estimates its sales at 180,000 units in the first quarter and that sales will increase by 18,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale.
Cash collections for the third quarter are budgeted at
Select one:
a. $6,156,000
b. $4,428,000
c. $3,051,000
d. $5,319,000
4. The cash budget reflects
Select one:
a. expected cash receipts and cash disbursements from all sources
b. all the items that appear on a budgeted income statement
c. all the items that appear on a budgeted balance sheet
d. all revenues and all expenses for a period
5. Burr, Inc.'s direct materials budget shows total cost of direct materials purchases for April $400,000, May $480,000 and June $560,000. Cash payments are 60% in the month of purchase and 40% in the following month. The budgeted cash payments for June are
Select one:
a. $528,000
b. $512,000
c. $480,000
d. $416,000
1. Teller Co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $12.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Teller has 3,900 pounds of clay mix in beginning inventory and wants to have 4,500 pounds in ending inventory.
What is the total amount to be budgeted for manufacturing overhead for the month?
Select one:
a. $11,484
b. $2,871
c. $11,880
d. $2,970
2. Haft Construction Company determines that 54,000 pounds of direct materials are needed for production in July. There are 3,200 pounds of direct materials on hand at July 1 and the desired ending inventory is 2,800 pounds. If the cost per unit of direct materials is $3, what is the budgeted total cost of direct materials purchases?
Select one:
a. $165,600
b. $160,800
c. $163,200
d. $158,400
3. Dolce Co. estimates its sales at 180,000 units in the first quarter and that sales will increase by 18,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale.
Cash collections for the third quarter are budgeted at
Select one:
a. $6,156,000
b. $4,428,000
c. $3,051,000
d. $5,319,000
4. The cash budget reflects
Select one:
a. expected cash receipts and cash disbursements from all sources
b. all the items that appear on a budgeted income statement
c. all the items that appear on a budgeted balance sheet
d. all revenues and all expenses for a period
5. Burr, Inc.'s direct materials budget shows total cost of direct materials purchases for April $400,000, May $480,000 and June $560,000. Cash payments are 60% in the month of purchase and 40% in the following month. The budgeted cash payments for June are
Select one:
a. $528,000
b. $512,000
c. $480,000
d. $416,000
Related questions
Required information
[The following information applies to the questionsdisplayed below.]
FreshPak Corporation manufactures two types of cardboard boxesused in shipping canned food, fruit, and vegetables. The cannedfood box (type C) and the perishable food box (type P) have thefollowing material and labor requirements.
| Type of Box | |||||||
| C | P | ||||||
| Direct materialrequired per 100 boxes: | |||||||
| Paperboard ($0.40 perpound) | 35 | pounds | 75 | pounds | |||
| Corrugating medium ($0.20 perpound) | 25 | pounds | 35 | pounds | |||
| Direct labor required per 100boxes ($20.00 per hour) | 0.20 | hour | 0.40 | hour | |||
The following production-overhead costs are anticipated for thenext year. The predetermined overhead rate is based on a productionvolume of 425,000 units for each type of box. Production overheadis applied on the basis of direct-labor hours.
| Indirectmaterial | $ | 12,900 | |
| Indirect labor | 54,600 | ||
| Utilities | 33,000 | ||
| Property taxes | 22,000 | ||
| Insurance | 15,000 | ||
| Depreciation | 41,000 | ||
| Total | $ | 178,500 | |
The following selling and administrative expenses areanticipated for the next year.
| Salaries and fringebenefits of sales personnel | $ | 123,000 | |
| Advertising | 26,000 | ||
| Management salaries and fringebenefits | 142,000 | ||
| Clerical wages and fringebenefits | 42,500 | ||
| Miscellaneous administrativeexpenses | 6,700 | ||
| Total | $ | 340,200 | |
The sales forecast for the next year is as follows:
| Sales Volume | Sales Price | ||||||
| Box type C | 430,000 | boxes | $ | 115.00 | per hundredboxes | ||
| Box type P | 430,000 | boxes | 175.00 | per hundred boxes | |||
The following inventory information is available for the nextyear. The unit production costs for each product are expected to bethe same this year and next year.
| Expected Inventory January 1 | Desired Ending Inventory December 31 | ||||
| Finished goods: | |||||
| Box type C | 17,000 | boxes | 12,000 | boxes | |
| Box type P | 27,000 | boxes | 22,000 | boxes | |
| Raw material: | |||||
| Paperboard | 18,500 | pounds | 8,500 | pounds | |
| Corrugating medium | 8,500 | pounds | 13,500 | pounds | |
Prepare a master budget for FreshPak Corporation for the nextyear. Assume an income tax rate of 30 percent.
Prepare the budgeted income statement for the next year.(Do not round intermediate calculations.)
Prepare the budgeted income statement for the next year.(Do not round intermediate calculations.)
