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Exam Study guide 3 (Ch 9 & 10) MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the questi 1) On the direct labor budget, the total quantity of direct labor hours needed is computed as 1) A) units to be produced x direct labor hour per unit B) estimated direct labor hours needed x cost per hour C) units to be produced - indirect labor hours x cost per labor hour D) quantity needed for production + indirect labor hours- direct labor hours. the direct materials budget, the total quantity of direct materials needed is computed as A) quantity needed for production - desired end inventory of DM + beginning inventory DM. B) quantity needed for production + desired end inventory of DM - beginning inventory of DM. C) units to be produced + desired end inventory of DM- beginning inventory of DM. D) units to be produced - desired end inventory of DM + beginning inventory of 2) On 2) DM. 3) Which of the following is not included in the operating budget? A) Budgeted income statement C) Sales budget B) Budgeted balance sheet D) Inventory budget 4) Which of the following is not part of the operating budget? 4) A) Sales budget B) Budgeted income statement C) Cash budget D) Inventory, purchases and cost of goods sold budget 5) CatNap Company has two products: Kittyz and Katz. A March sales forecast projects 20,000 units 5) of Kittyz and 15,000 units of Katz are going to be sold at prices of $15 and $12, respectively. The desired ending inventory of Kitt z is 20% higher than the beginning inventory, which was 200 units. How much are total March sales for Kittyz anticipated to be? A) $240,000 B) $100,000 C) $300,000 D) $180,000 6) DogDayz Company has two products: Doggyz and Pupz. A March sales forecast projects 22,000 6) units of Doggyz and 15,000 units of Pupz are going to be sold at prices of $17.50 and $12.00, respectively. The desired ending inventory of Doggyz is 20% higher than the beginning inventory which was 2,000 units. How much are total March sales for Doggyz anticipated to be? A) $180,000 B) 5264,000 C) $385,000 D) $110,000 7) Kotrick Company has b desired ending inventory is 18,000 units, how many units should be produced? A) 56,500 B) 26,000 C) 10,000 D) 20,000 8) Crafty Carpentry Company produces and sells a shelf for $25 each. The beginning inventory is 8) 2,000 shelves, and the desired ending inventory is 2,200 shelves. If budgeted production is 12,500 shelves, what is the forecasted sales revenue from the shelves? A) $317,500 B) $207,500 C) $417,500 D) $307,500