1. Jillian Inc. produces leather handbags. The production budget for the next four months is: July 5,300 units, August 7,800, September 7,800, October 8,500. Each handbag requires 1.9 hours of unskilled labor (paid $14 per hour) and 2.8 hours of skilled labor (paid $19 per hour). How many unskilled labor hours will be budgeted for August?

Multiple Choice

7,800

14,820

21,840

36,660

2. Budgeted cost of goods sold should include which of the following?

Multiple Choice

• Direct materials and direct labor

• Direct materials, direct labor, and manufacturing overhead

• Direct materials, direct labor, manufacturing overhead, and selling expenses

• Direct materials, direct labor, manufacturing overhead, selling expenses, and administrative expenses

3. Crystal, Inc. has prepared the following budgets for March. In March, budgeted production is 1,000 units, budgeted sales is 1,200 units, and direct materials inventory unit costs will stay constant.

Direct materials	$	8.50	per unit
Direct labor	$	12.80	per unit
Variable manufacturing overhead	$	8.50	per unit
Fixed manufacturing overhead	$	8,500

What is budgeted cost of goods sold for March?

Multiple Choice

• $36,796

• $38,300

• $44,260

• $45,960