1. Newington production data for a new deluxe product were taken from the most recent quarterly production budget: July August September Planned production in units 1,500 1,600 1,480 In addition, Newington produces 6,000 units a month of its standard product. It takes two direct labor hours to produce each standard unit and 2.25 direct labor hours to produce each deluxe unit. Newington cost per labor hour is $15. Direct labor cost for August would be budgeted at:

Multiple Choice $234,000. $230,625. $247,500. $250,500. None of the answers is correct.

2.

Glastonbury Inc. began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for April, May, and June were $52,000, $72,000, and $62,000, respectively, what were the firm's budgeted collections for June?

Multiple Choice

• $18,600.

• $52,800.

• $61,800.

• $67,000.

• None of the answers is correct.