1. The WRT Corporation makes collections on sales according to the following schedule:

60% in month of sale

37% in month following sale

3% in second month following sale

The following sales have been are expected:

	Expected Sales
April	$160,000
May	$170,000
June	$160,000

Budgeted cash collections in June should be budgeted to be:

a. $160,000

b. $158,900

c. $160,480

d. $163,700

2. Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year.

	Beginning Inventory	Ending Inventory
Raw material*	42,000	52,000
Finished goods	82,000	52,000

*Three pounds of raw material are needed to produce each unit of finished product.

If Paradise Corporation plans to sell 490,000 units during next year, the number of units it would have to manufacture during the year would be:

a. 448,000 units

b. 490,000 units

c. 520,000 units

d. 460,000 units

3. Morie Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.75 direct labor-hours. The direct labor rate is $10.10 per direct labor-hour. The production budget calls for producing 7,200 units in March and 7,000 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. $110,696.00

b. $123,725.00

c. $108,373.00

d. $107,565.00

4. The manufacturing overhead budget at Amrein Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,200 direct labor-hours will be required in August. The variable overhead rate is $9 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,040 per month, which includes depreciation of $3,720. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

a. $39,320

b. $19,800

c. $62,840

d. $59,120