4.Assume that a company provided the following information and assumptions from its master budget: Sales budget: Unit sales in June, July, and August are 20,000, 18,000, and 17,000, respectively. The selling price per unit is $80. All sales are on account. 20% of sales are collected in the month of sale and 80% are collected in the next month. Production budget: The ending finished goods inventory is always 25% of next months unit sales. Direct labor budget: The direct labor-hours required per unit is 1.50 hours. The direct labor cost per hour is $18. What is the budgeted direct labor cost for July?

Multiple Choice

• $474,000

• $479,250

• $482,250

• $486,000

5.Assume a merchandising company provides the following information from its master budget for the month of May:

Cash collections from customers	$ 126,000
Cost of goods sold	$ 91,000
Cash paid for merchandise purchases	$ 86,000
Selling and administrative expenses	$ 28,000
Cash paid for selling and administrative expenses	$ 29,000
Accounts receivable, May 1st	$ 14,000
Accounts receivable, May 31st	$ 22,000

If all of the companys sales are on account, what is the budgeted net operating income for May?

Multiple Choice

• $15,000

• $30,000

• $14,000

• $29,000