1. Brockney Incorporated bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $1.20 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $119,700 per month, which includes depreciation of $19,740. All other fixed manufacturing overhead costs represent current cash flows. The July direct labor budget indicates that 9,500 direct labor-hours will be required in that month. Required: 1. Determine the cash disbursements for manufacturing overhead for July. 2. Determine the predetermined overhead rate for July. (Round your answer to 2 decimal places.)

2.

Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.

	Beginning Inventory	Ending Inventory
Finished goods (units)	23,000	73,000
Raw material (grams)	53,000	43,000

Each unit of finished goods requires 2 grams of raw material. The company plans to sell 580,000 units during the year.

How much of the raw material should the company purchase during the year?

3.

Which of the following budgets are prepared before the sales budget?

	Budgeted Income Statement	Direct Labor Budget
A)	Yes	Yes
B)	Yes	No
C)	No	Yes
D)	No	No

4.

There are various budgets within the master budget. One of these budgets is the production budget. Which of the following BEST describes the production budget?

Multiple Choice

It details the required direct labor hours.

It details the required raw materials purchases.

It summarizes the costs of producing units for the budget period.

It is calculated based on the sales budget and the desired ending inventory.

5.

Zolezzi Incorporated is preparing its cash budget for March. The budgeted beginning cash balance is $21,000. Budgeted cash receipts total $117,000 and budgeted cash disbursements total $86,000. The desired ending cash balance is $65,000. The company can borrow up to $100,000 at any time from a local bank, with interest not due until the following month.

Required:

Prepare the company's cash budget for March in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance.

6.

Sthilaire Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.33 direct labor-hours. The direct labor rate is $8 per direct labor-hour. The production budget calls for producing 8,600 units in April and 8,500 units in May. The direct labor workforce is fully adjusted each month to the required workload. Required:

Prepare the direct labor budget for the April and May. (Round "labor-hours per unit" answers to 2 decimal places.)

7.

Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.

	Beginning Inventory	Ending Inventory
Finished goods (units)	21,000	71,000
Raw material (grams)	51,000	41,000

Each unit of finished goods requires 3 grams of raw material. The company plans to sell 680,000 units during the year.

The number of units the company would have to manufacture during the year would be:

8.

Bustillo Incorporated is working on its cash budget for March. The budgeted beginning cash balance is $54,000. Budgeted cash receipts total $138,000 and budgeted cash disbursements total $133,000. The desired ending cash balance is $78,000. To attain its desired ending cash balance for March, the company needs to borrow:

Multiple Choice

$0

$78,000

$137,000

$19,000

9.

Harrti Corporation has budgeted for the following sales:

July	$449,000
August	$584,000
September	$617,000
October	$892,000
November	$750,000
December	$710,000

Sales are collected as follows: 15% in the month of sale; 65% in the month following the sale; and the remaining 20% in the second month following the sale. In Harrti's budgeted balance sheet at December 31, at what amount will accounts receivable be shown?

Multiple Choice

10.

When preparing a direct materials budget, the required purchases of raw materials in units equals:

Multiple Choice

raw materials needed to meet the production schedule + desired ending inventory of raw materials beginning inventory of raw materials.

raw materials needed to meet the production schedule desired ending inventory of raw materials beginning inventory of raw materials.

raw materials needed to meet the production schedule desired ending inventory of raw materials + beginning inventory of raw materials.

raw materials needed to meet the production schedule + desired ending inventory of raw materials + beginning inventory of raw materials.