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13) Never Ending Battle for Truth Justice and the American Way LLC makes one product and it provided the following information to help prepare the
13) Never Ending Battle for Truth Justice and the American Way LLC makes one product and it provided the following information to help prepare the master budget for the next four months of operations: a.Thc budgeted selling price per unit is $100. Budgeted unit sales for April, May, June, and July are 7,000, 1 1,000, 13,000, and 14,000 units, respectively. All sales are on credit. b.Regarding credit sales, 40% are collected in the month of the sale and 50% in the following month and the remaining 9 % in second month following sales, 1 % likely uneollectible . c.The direct labor wage rate is $18.00 per hour. Each unit of nished goods requires 2.9 direct labor-hours. d.Vari able manufacturing overhead is $7.00 per direct labor-hour. Fixed manufacturing overhead IS 2810. The budgeted accounts receivable balance at the end of J une is closest to: A) $747,000 B) $866,000 C) $767,000 D) $780,000
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