Question

Milano Corporation is working on its direct labor budget for the next two months. End output requires 0.50 direct labor-hours. The directorate is 19.80 per direct labor production budget calls for producing 400 in brand 6.300 units in Novem direct labor work force is fully adjusted to the decor hours needed each mone would be the total combined direct labor cost for the two month? The e A B C D $30,870 $31,360 $62 230 $31,115 B. Potter Corporation is working on its direct labor budget for the next two output requires 0.75 direct labor-hours. The direct labor rate is $8.10 per labor hour. The Quaranta g et calls for producing 2.000 units in March and 2.300 units in April. The company Os its direct labor workers a 40-hour paid work week with the number of workers currently employed, that means that the company is committed to paying its to paying its direct labor work force for at least 1,780 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months A $28,512.00 B. $26,406.00 C. $28,228.50 D. $26,122.50 6. Gibbs Inc. is working on its cash budget for lanuary. The budgeted beginning cash balance is $41,000. Budgeted cash receipts total $114.000 and budgeted cash disbursements total $113,000. The desired ending cash balance is $60,000. The excess (deficiency) of cash available over disbursements for January will be A $42,000 B. $155,000 C. $40,000 D. $1,000 7. Penguin Framina's cost formula for its supplies cost is $1,620 per month plus $13 per frame. For the month of April, the company planned activity of 882 frames, but the level of activity was 878 frames. The total cost for the month was $13,500. The supplies cost flexible budget for April would be closest to: A $13,086 B. $13,500 C. $13,034 D. $13,027

Answer 1

Answer of 4

C

Explanation:

Oct: Units 6,400 ; Per unit labor required 0.5 hour ; Total Labor hours required for 6,400 units is 3,200 (6,400 units x 0.5 hour) hours; Per hour labor unit $ 9.8 ; Total labor charges $ 31,360 (3,200 hours x $ 9.8)

Nov: Units 6,300 ; Per unit labor required 0.5 hour ; Total Labor hours required for 6,300 units is 3,150 (6,300 units x 0.5 hour) hours; Per hour labor unit $ 9.8 ; Total labor charges $ 30,870 (3,150 hours x $ 9.8)

Total Labor hours is $ 62,230 ($ 31,360 + $ 30,870)

Answer of 5

A

March: Units 2,000 ; Per unit labor required 0.75 hour ; Total Labor hours required for 2,000 units is 1,500 (2,000 units x 0.75 hour) hours; Per hour labor unit $ 8.1 ; Total labor charges $ 12,150 (1,500 hours x $ 8.1), But the company is committed to paying its direct labor work force for at least 1,760 hours in total each month even if there is not enough work to keep them busy, hence we will calculate labor charges as per 1,760 hours in a month i.e. $ 14,256 (1,760 hours x $ 8.1)

April: Units 2,300 ; Per unit labor required 0.75 hour ; Total Labor hours required for 2,300 units is 1,725 (2,300 units x 0.75 hour) hours; Per hour labor unit $ 8.1 ; Total labor charges $ 13,972 (1,725 hours x $ 8.1), But the company is committed to paying its direct labor work force for at least 1,760 hours in total each month even if there is not enough work to keep them busy, hence we will calculate labor charges as per 1,760 hours in a month i.e. $ 14,256 (1,760 hours x $ 8.1)

Total Labor hours is $ 28,512 ($ 14,256 + $ 14,256)

Answer to 6

A

Particulars	Amount $
Beginning Cash Balance	41,000
Budgeted Cash Receipts	114,000
Total Cash Available	155,000
Budgeted Cash Disbursements	113,000
Cash Excess over Disbursements	42,000