8)Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 7.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows:

August	24,000	units
September	22,700	units
October	24,100	units
November	25,300	units
December	25,000	units

The company wants to maintain monthly ending inventories of Jurislon equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 12,200 kilograms of Jurislon were on hand. The cost of Jurislon is $21 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months.

The total cost of Jurislon to be purchased in August is:

Multiple Choice

• $1,747,200

• $4,238,850

• $4,495,050

• $3,780,000

9)

Smith Corporation makes and sells a single product called a Pod. Each Pod requires 2.8 direct labor-hours at $11.00 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. Smith Corporation is preparing a Direct Labor Budget for the second quarter of the year.

In June the company has budgeted to produce 23,400 Pods. Budgeted direct labor costs incurred in June would be: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

• $906,559

• $720,720

• $320,920

• $257,400

10)

The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available:

	Monthly Fixed Cost		Variable Cost Per Deb Sold
Sales commissions			$	0.95
Shipping			$	1.45
Advertising	$	50,500	$	0.25
Executive salaries	$	60,500
Depreciation on office equipment	$	20,500
Other	$	40,500

All of these expenses (except depreciation) are paid in cash in the month they are incurred.

If the company has budgeted to sell 15,500 Debs in February, then the total budgeted fixed selling and administrative expenses for February is:

Multiple Choice

• $121,500

• $131,500

• $151,500

• $172,000