Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company has budgeted direct materials purchases of $400000 in July and $560000 in August. Past experience indicates that the company pays for 70% of

image text in transcribed

image text in transcribed

image text in transcribed

A company has budgeted direct materials purchases of $400000 in July and $560000 in August. Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month. During August, the following items were budgeted: The budgeted cash disbursements for August are $512000.$948000.$902000.$844000. Vaughn Manufacturing is planning to sell 1200 boxes of ceramic tile, with production estimated at 770 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.50 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $20 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Vaughn has 3700 pounds of clay mix in beginning inventory and wants to have 4700 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month? $33880$52800$8470$13200 Bonita Industries is planning to sell 1000 buckets and produce 580 buckets during March. Each bucket requires 200 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 200 grams and employees of the company are paid $10 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Bonita has 600 kilos of plastic in beginning inventory and wants to have 100 kilos in ending inventory. How much is the total amount of budgeted direct labor for March? $58000$2000$2900$1000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance Theory And Practice

Authors: Anne Marie Ward

3rd Edition

1908199482, 978-1908199485

More Books

Students also viewed these Finance questions