1.

LFM Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.7 hours of direct labor at the rate of $23.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June. The company plans to sell 46,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 580 and 140 units, respectively. Budgeted direct labor costs for June would be: (Do not round intermediate calculations.)

rev: 11_19_2015_QC_CS-32026

$2,848,026

$2,866,776

$2,829,276

$1,050,500

2.

The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information:

Sales at $530,000, all for cash.

Merchandise inventory on October 31 was $240,000.

The cash balance November 1 was $26,000.

Selling and administrative expenses are budgeted at $84,000 for November and are paid for in cash.

Budgeted depreciation for November is $41,000.

The planned merchandise inventory on November 30 is $270,000.

The cost of goods sold is 70% of the selling price.

All purchases are paid for in cash.

There is no interest expense or income tax expense.

The budgeted cash receipts for November are:

$395,000

$530,000

$135,000

$571,000

3.

Blue Corporation's standards call for 2,100 direct labor-hours to produce 1,050 units of product. During May 850 units were produced and the company worked 950 direct labor-hours. The standard hours allowed for May production would be:

2,100 hours

950 hours

1,700 hours

1,250 hours