Question

# Flagstaff Company has budgeted production units of 8,400 for July and 8,600 for August. The direct...

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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