Question

1. Click to watch the Tell Me More Learning Objective 4 video and then answer the questions below.

   1. All of the following are integrated into the cost of goods sold budget except the __________ budget.

   1. direct labor cost
   2. direct materials purchases
   3. factory overhead cost
   4. selling and administrative expenses

   2. The __________ is often used as the starting point for the selling and administrative expenses budget.

   1. sales budget
   2. factory overhead cost budget
   3. production budget
   4. cost of goods sold budget

   3. Pisa Trophy Co. budgeted production of 50,000 brass trophies for the coming year. Each trophy requires engraving. Assume that 15 minutes are required to engrave each trophy. If engraving labor costs $15.00 per hour, determine the direct labor cost budget for the year.

   1. $750,000
   2. $12,500
   3. $187,500
   4. None of these choices are correct.

   4. Which of the following formulas determines the budgeted units to be produced?

   1. Expected Units to Be Sold – Desired Units in Ending Inventory + Estimated Units in Beginning Inventory
   2. Expected Units to Be Sold – Desired Units in Ending Inventory – Estimated Units in Beginning Inventory
   3. Expected Units to Be Sold + Desired Units in Ending Inventory + Estimated Units in Beginning Inventory
   4. Expected Units to Be Sold + Desired Units in Ending Inventory – Estimated Units in Beginning Inventory

Answer 1