Question

​Bulldog, Inc. has budgeted sales for the first quarter of the next year to be 35,000 units. The inventory on hand at the beginning of quarter is 10,000 units. The desired ending inventory is 1,000 units. Calculate the budgeted production for the first quarter.

A. 26,000 units

B. 25,000 units

C. 36,000 units

D. 1,000 units

Meridian Fashions uses standard costs for their manufacturing division. The allocation base for overhead costs is direct labor hours. From the following​ data, calculate the fixed overhead cost variance.  

Actual fixed overhead	$40,000
Budgeted fixed overhead	$24,000
Standard overhead allocation rate	$7
Standard direct labor hours per unit	3 DLHr
Actual output	2,100 units

A. $16,000 F

B. $20,100 U

C. $16,000 U

D. $20,100. F

Alphonse Company manufactures staplers. The budgeted sales price is $12.00 per​ stapler, the variable costs are $2.00 per​ stapler, and budgeted fixed costs are $10,000. What is the budgeted operating income for 4,700 ​staplers?

A. $56,400

B. $37,000

C. $47,000

D. $9,400

The budgeted production of​ Capricorn, Inc. is 8,000 units per month. Each unit requires 30 minutes of direct labor to complete. The direct labor rate is $90.00 per hour. Calculate the budgeted cost of direct labor for the month.​ (Round any intermediate calculations to the nearest cent and your final answer to the nearest​ dollar.)

A. $360,000.00

B. $720,000.00

C. $120,000.00

D. $24,000.00

A company is setting its direct materials and direct labor standards for its leading product. Direct material costs from the supplier are $5.00 per square​ foot, net of purchase discount. Freight−in amounts to $0.30 per square foot. The basic wages of the assembly line personnel are $19.00 per hour. Payroll taxes are approximately 23​% of wages. How much is the direct labor cost standard per​ hour? (Round your answer to the nearest​ cent.)

A. $4.37

B. $19.00

C. $28.37

D. $23.37

Answer 1

1. A. 26,000 units

Explaination:

Budgeted sales+ closing inventory- opening inventory= Budgeted production

35,000+1,000-10,000=26,000

2. C. $16,000 U

Explaination:

Standard overhead= 2100 units*3hrs*$7 per DL hr= 44100

Budgeted fixed overhead= $24000

Actual fixed overhead= $40000

Therefore, Fixed overhead variance= 24000-40000= $16000 U

3. B. $37,000

Explaination:

No. of staplers (sales price- variale cost)- fixed cost= net operating income

4,700(12-2)-10,000= 37000

4. A. $360,000

Explaination:

Total units* time taken per unit* rate per labour hr

{(8,000*30/60)*90}= 360000

5. B. $19.00

Direct labour hr will be equal to basic wages since inclusive of tax