15 The WRT Corporation makes collections on sales according to the following schedule: 25% in month of sale 65% in month following sale 5% in second month following sale 5% uncollectible The following sales have been budgeted: April Sales $120,000 May $100,000 June $110,000 Budgeted cash collections in June would be: A $27,500 B. $98.500 C. $71,000 D.$115,500 D. D. D. QUESTION 17 McCubbin Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: Move time Wait time Queue time Process time Inspection time The delivery cycle time was: A A.25.0 hours A. B B.13.1 hours B C.27.0 hours C. 0.3.5 hours Hours 3.5 11.9 9.6 1.7 0.3 QUESTION 18 Brown Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable Overhead 1 Variable Overhead 2 Products A B C D $15.60 $19.50 $12.50 $15.20 17.60 21.00 15.40 9.40 $2.60 $3.10 $2.80 $3.50 4.40 5.00 8.10 5.10 Additional data concerning these products are listed below. Grinding minutes per unit Selling price per unit Products A B C D 2.00 1.10 0.70 0.30 $78.70 $71.10 $67.00 $42.00 The grinding machines are potentially the constraint in the production. Which product makes the LEAST profitable use of the grinding machines? A. Product A 8. Product B C. Product C D. Product D QUESTION 19 Missoula Industries manufactures a product with the following costs per unit at the expected production of 30,000 units: Direct materials Direct labor Variable manufacturing overhead $5 15 8 The company has the capacity to produce 60,000 units. The product regularly sells for $45. A wholesaler has offered to pay $40 each for 2,000 units. If the special order is accepted, the effect on Missoula's operating income would be a A. $24,000 increase 8. $34,000 increase C. $10,000 decrease D.$12,000 decrease Fruchter Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: Move time Wait time Queue time Process time Inspection time The throughput time was: A. 4.6 hours A B. 32.8 hours B. C. 11.0 hours D.37.4 hours Hours 2.7 26.4 64 1.8 0.1