Chapter 21 ACCT II - Jordan and Taylor are too busy baking...

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Jordan and Taylor are too busy baking brownies to schedule an appointment with you. They did send you the enclosed questions for you to answer Chapter 21 Questions: 1. Units to be produced annually: 200,000 tins Direct labor: 1 hour per 100 tins Variable overhead costs per direct labor hour: Indirect materials $2.05 Indirect labor $1.20 Utilities $9.25 Maintenance $3.50 Fixed overhead costs per quarter: Insurance $3,000 Depreciation $2,000 Rent $12,000 What is the budgeted total manufacturing overhead for the year? (5 points) 2. Sales: 60,000 tins per quarter Variable costs per dollar of sales: sales commissions 5%, delivery expense .5%, and advertising 1.5%. Fixed costs per quarter: sales salaries $40,000, office rent $1,500, utilities $1,200, and repairs expense $200. Selling price: $10 per tin What is the budgeted total selling and administrative expenses for the quarter? (5 points) 3. Sales are 30% cash and 70% on credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale. Sales were December $180,000; January $220,000; February $250,000; and March $300,000. What was total cash received in March? (5 points)
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