1.

Teller Co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $12.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Teller has 3,900 pounds of clay mix in beginning inventory and wants to have 4,500 pounds in ending inventory. What is the total amount to be budgeted for direct labor for the month?

Select one:

a. $2,610

b. $10,440

c. $2,700

d. $41,760

2.

Teller Co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $12.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Teller has 3,900 pounds of clay mix in beginning inventory and wants to have 4,500 pounds in ending inventory. What is the total amount to be budgeted in pounds for direct materials to be purchased for the month?

Select one:

a. 38,280

b. 40,200

c. 38,880

d. 37,680

3.

Comma Co. makes and sells widgets. The company is in the process of preparing its selling and administrative expense budget for the month. The following budget data are available:

Item Variable Cost Per Unit Sold Monthly Fixed Cost

Sales commissions $1 $10,000

Shipping $3

Advertising $4

Executive salaries $120,000

Depreciation on office equipment $4,000

Other $2 $6,000

Expenses are paid in the month incurred. If the company has budgeted to sell 80,000 widgets in October, how much is the total budgeted selling and administrative expenses for October?

Select one:

a. $940,000

b. $800,000

c. $930,000

d. $140,000

4.

The single most important output in preparing financial budgets is the

Select one:

a. sales forecast

b. budgeted income statement

c. cash budget

d. determination of the unit cost of the product

5.

Which one of the following items would never appear on a cash budget?

Select one:

a. Depreciation expense

b. Office salaries expense

c. Interest expense

d. Travel expense