Chapter 21 Quiz - 1 Production estimates for August are as follows Estimated inventory(units August 1 12,000 Desired inventory(units August 31 9,000

Chapter 21 Quiz - 1 Production estimates for August are as...

  • Citrus College
  • ACCT 102
  • angelinakocharyan
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1. Production estimates for August are as follows: Estimated inventory (units), August 1 12,000 Desired inventory (units), August 31 9,000 Expected sales volume (units), August 75,000 For each unit produced, the direct materials requirements are as follows: Material A ($5 per lb.) 3 lbs. Material B ($18 per lb.) 1/2 lb. The total direct materials purchases (assuming no beginning or ending inventory of material) of Materials A and B required for August production is - $1,080,000 for A; $648,000 for B 2. For February, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising expenses are $90,000; shipping expenses total 2% of sales; and miscellaneous selling expenses are $2,500 plus 1/2 of 1% of sales. Total selling expenses for the month of February are - $241,000 3. At the beginning of the period, the Assembly Department budgeted direct labor of $110,000, direct materials of $170,000, and fixed factory overhead of $28,000 for 8,000 hours of production. The department actually completed 10,000 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting?
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