Flagstaff Company has budgeted production units of 8,400 for July and 8,600 for August. The direct labor requirement per unit is 0.60 hours. Labor is paid at the rate of $20 per hour. The total cost of direct labor for the month of August is:
$204,000.
$5,040.
$100,800.
$5,160.
$103,200.
Cameroon Corp. manufactures and sells electric staplers for $16.30 each. If 10,000 units were sold in December, and management forecasts 4% growth in sales each month, the dollar amount of electric stapler sales budgeted for February should be:
$163,000
$169,520
$190,687
$183,353
$176,301
A sporting equipment store expects to purchase $7,300 of ski boots in October. The store had $3,300 of ski boots in merchandise inventory at the beginning of October, and expects to have $2,300 of ski boots in merchandise inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October?
$9,600.
$7,300.
$10,600.
$8,300.
$5,600.
Answer: total cost of direct labor For the month of august is $103, 200
explanation
Total cost of direct labor august = 8600*(0. 6*20)=8600*12 =$103, 200
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the dollar amount of electric stapler sales budgeted for february should be $176, 301
explanation
10000 units *1. 04^2
10,816*$16. 30
=$176,300
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budgeted cost of goods sold for october is $8, 300
explanation
Cost of goods sold = purchases + opening stock - closing stock
= $7, 300+3,300- 2300
=$10,600-2,300
=$8,300
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