1. Just Like Fred Astaire Corporation has provided you with the following labor data concerning one of the products in its standard cost system. The following data are available for April:

• Actual direct labor cost incurred: $113,100
• Actual direct labor hours worked: 2,500 direct labor hours
• Direct labor rate variance: $600 U
• Direct labor spending variance: $3,000 F

The standard number of direct labor hours allowed for April production is closest to:

	a.	2,420 hours
	b.	2,593 hours
	c.	2,580 hours
	d.	2,553 hours
	e.	2,447 hours

2. Sit Down, Ltd., is trying to figure out how many units it needs to sell in order to make a specific target profit. The firm provided the following monthly data:

	Per month:	Per unit:
Selling price		$41.50
Variable manufacturing costs		$15.25
Fixed manufacturing costs	$50,915
Variable selling and admin costs		$3.75
Fixed selling and admin costs	$26,730

How many units does the firm need to sell in order to earn a target profit of $13,800 (round your answer up to the nearest whole unit)?

	a.	2,466 units
	b.	4,813 units
	c.	3,451 units
	d.	2,877 units
	e.	4,065 units

3. ts Hot, Inc. makes one product and it provided the following information to help prepare the master budget for the next six months of operations:

• Budgeted unit sales for the next six months are as follows: January = 80,200 units; February = 81,400 units; March = 80,900 units; April = 82,300 units; May = 85,400 units; and, June = 84,000 units. The budgeted selling price per unit is $30. All sales are on account.
• Regarding sales on account, 40% are collected in the month of sale and 60% are collected in the following month.
• The ending finished goods inventory equals 25% of the following month's sales.
• The ending raw materials inventory equals 40% of the following months raw materials production needs.
• Each unit of finished goods requires 4 kilograms of raw materials. The raw materials cost $7.00 per kilogram.
• The direct labor wage rate is $10.00 per hour. Each unit of finished goods requires 1.4 direct labor-hours.
• Manufacturing overhead is entirely variable and is $4.60 per direct labor-hour.

The budgeted direct labor cost for March is: