Chapter 20 study guide
1. Orr Corporation's manufacturing costs for August when
production was 800 units
$10 per unit
Factory supervisory salaries
Other fixed factory costs
How much is the budgeted manufacturing cost for a
month when 900 units are produced?
2. Razmataz Company makes and sells umbrellas. The
company is in the process of preparing its Selling and
Administrative Expense Budget for the last half of the
year. The following budget data are available:
Variable Cost Per Uni
Depreciation on office equipment
Other operating expenses
Expenses are paid in the month incurred. If the
company has budgeted to sell 2,000 umbrellas in
October, how much is the total budgeted variable
selling and administrative expenses for October?
3. At January 1, 2006, Jake, Inc. has beginning inventory of 3,000 surfboards.
Jake estimates it will sell
14,000 units during the first quarter of 2006 with a 10% increase in sales each quarter.
Jake's policy is to
maintain an ending inventory equal to 20% of the next quarter's sales.
Each surfboard costs $140 and is
sold for $200.
How many units should Jake produce during the first quarter of 2006?