1.Garrity Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $6.80 per machine-hour and fixed manufacturing overhead cost of $503,272 per period. If the denominator level of activity is 7,600 machine-hours, the variable element in the predetermined overhead rate would be:

2.Tracie Corporation manufactures and sells women's skirts. Each skirt (unit) requires 2.2 yards of cloth. Selected data from Tracie's master budget for next quarter are shown below:

	July			August		September
Budgeted sales (in units)	7,000			9,000		11,000
Budgeted production (in units)	8,000			10,500		13,000

Each unit requires 0.8 hours of direct labor, and the average hourly cost of Tracie's direct labor is $18. What is the cost of Tracie Corporation's direct labor in September?

3.Hesterman Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations:

Budgeted selling price per unit	$ 118
Budgeted unit sales (all on credit):
April	7,800
May	9,400
June	14,000
July	12,100

Raw materials requirement per unit of output	3	pounds
Raw materials cost	$ 3.00	per pound
Direct labor requirement per unit of output	2.8	direct labor-hours
Direct labor wage rate	$ 25.00	per direct labor-hour

Credit sales are collected:

40% in the month of the sale

60% in the following month

The ending finished goods inventory should equal 40% of the following month's sales. The ending raw materials inventory should equal 20% of the following months raw materials production needs.

The expected cash collections for May is closest to:

4.Sevenbergen Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations:

Budgeted selling price per unit	$ 92
Budgeted unit sales (all on credit):
July	9,000
August	11,300
September	10,400
October	10,800

Raw materials requirement per unit of output	4	pounds
Raw materials cost	$ 1.00	per pound
Direct labor requirement per unit of output	2.8	direct labor-hours
Direct labor wage rate	$ 22.00	per direct labor-hour
Variable selling and administrative expense	$ 1.50	per unit sold
Fixed selling and administrative expense	$ 70,000	per month

Credit sales are collected:

40% in the month of the sale

60% in the following month

Raw materials purchases are paid:

30% in the month of purchase

70% in the following month

The ending finished goods inventory should equal 20% of the following month's sales. The ending raw materials inventory should equal 30% of the following months raw materials production needs.

The budgeted sales for August is closest to: