1.

For February, sales revenue is $575,000, sales commissions are 4% of sales, the sales manager's salary is $80,000, advertising expenses are $83,700, shipping expenses total 3% of sales, and miscellaneous selling expenses are $2,500 plus of 1% of sales. Total selling expenses for the month of February are

a.$166,200

b.$209,325

c.$206,450

d.$189,200

2.

Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be 634,000 units, estimated beginning inventory is 103,000 units, and desired ending inventory is 81,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below. Material A: 0.50 lb. per unit @ $0.55 per pound Material B: 1.00 lb. per unit @ $1.92 per pound Material C: 1.20 lb. per unit @ $1.10 per pound The dollar amount of Material A used in production during the year is

a.$1,175,040

b.$168,300

c.$174,350

d.$807,840

3.

Consider Derek's budget information: materials to be used, $65,500; direct labor, $198,900; factory overhead, $394,700; work in process inventory on January 1, $190,000; and work in progress inventory on December 31, $192,600. What is the budgeted cost of goods manufactured for the year?

a.$659,100

b.$192,600

c.$656,500

d.$849,100

4.

Woodpecker Co. has $300,000 in accounts receivable on January 1. Budgeted sales for January are $960,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are

a.$1,068,000

b.$640,800

c.$1,368,000

d.$854,400