Question

#15

C) 572 per meeting hour D) $163 per meeting hour 13) The BRS Corporation makes collections on sales according to the following schedule: 50% in month of sale 47% in month following sale 39 in second month following sale The following sales have been budgeted: Sales April $ 170,000 May $ 190,000 June $ 180,000 Budgeted cash collections in June would be: A) $179,300 B) $180,510 C) $180,000 D) $184,400 14) Parwin Corporation plans to sell 28,000 units during August. If the company has 10,500 units on hand at the start of the month, and plans to have 11,500 units on hand at the end of the month, how many units must be produced during the month? A) 39,500 B) 38,500C ) 29,000 D) 27,000 15) Pooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.74 direct labor-hours. The direct labor rate is $11.70 per direct labor-hour. The production budget calls for producing 6600 units in April and 6400 units in May. The company guarantees 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 direct labor work force for at least 5480 hours in total cach 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) $119,527.20 B) S128,232.00 C) $112,554.00 D) $130,291.20

Answer 1

Ans. 13 ( D) Right

50 % of June	$ 90,000 ( $ 180,000* 70 %)
47 % of May	$ 89,300 ( $190,000 * 47%)
03 % of April	$ 5,100 ( $ 170,000 * 3%)
Total collection in June	$ 184,400

Ans. 14 ( C ) Right

Sales estimated	28,000 units
Add: Ending inventory	11,500 units
Needed units	39,500 units
Less: Beginning inventory	10,500 units
Production required	29,000 units

Ans. 16 ( B ) Right

First month Direct labor hours	5,480 hrs
Second month	5,480 hrs
Total Labor hours	10,960 hrs
× Rate per labor hour	$ 11.70 per hour
Total Labor cost of two month	$ 128,232