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1. Morie Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.79 direct labor-hours. The direct

1.

Morie Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.79 direct labor-hours. The direct labor rate is $11.30 per direct labor-hour. The production budget calls for producing 6,800 units in March and 6,600 units in April. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months?

A-$133,498.20

B-$120,842.20

C-$119,621.80

D-$123,848.00

2.

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

Sales at $630,000, all for cash.
Merchandise inventory on October 31 was $290,000.
The cash balance November 1 was $36,000.
Selling and administrative expenses are budgeted at $114,000 for November and are paid for in cash.
Budgeted depreciation for November is $61,000.
The planned merchandise inventory on November 30 is $320,000.
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:

A-$495,000

B-$630,000

C-$135,000

D-$691,000

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