Question
1. Bickford Company plans to sell 135,000 units in November and 180,000 units in December. Bickford's policy is that 10% of the following month's sales
1. Bickford Company plans to sell 135,000 units in November and 180,000 units in December. Bickford's policy is that 10% of the following month's sales must be in ending inventory. On November 1, there were 14,000 units in inventory.
It takes 30 minutes of direct labor time to make one unit. Direct labor wages average $17 per hour. Variable overhead is applied at the rate of $5 per direct labor hour. Fixed overhead is budgeted at $56,500 per month. What is the budgeted overhead for November?
Oa. $280.700
Ob. $444.500
Oc. $192,920
Od. $404,000
Oe. $348,420
2. Connor Company produces speaker systems for cars. Estimated sales (in units) in January are 40,000; in February are 37,000; and in March are 34,000. Each unit is priced at $60. Connor wants to have 35% of the following month's sales in ending inventory. That requirement was met on January 1.
Each speaker system requires 3 boxes and 15 yards of wire. Boxes cost $4 each and wire is $0.60 per yard. Connor wants to have 20% of the following month's production needs in ending raw materials inventory. On January 1, Connor had 24,000 boxes and 100,000 yards of wire in inventory. What is Connor's expected sales revenue for February?
Oa. $2,220,000
Ob. $60
Oc. $1.900,000
Od. $2.020,000
Oe. $1,125,000
Answer only, thank you
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