a. Which of the following is not a component of the master budget?

Sales budget.

Ending inventory and cost of goods sold budget.

Selling and administrative expenses budget.

Capital expenditures budget.

b. Sandhill Co. manufactures decorative pillows designed for use on outdoor patios. Sandhill requires that 30 percent of next months sales be on hand at the end of each month. The following information is available regarding budgeted sales of pillows:

	February	March	April	May	June
Budgeted unit sales	28000	21400	30700	43900	61900

What is budgeted production for April?

33340

39480

24560

30700

c. Cheyenne Corp. produces and sells free-standing quilt frames. In budgeting for production needs, the company requires that 10% of the next months sales be on hand at the end of each month. Budgeted sales of quilt frames over the next four months are:

	September	October	November	December
Budgeted unit sales	22500	31700	54100	46300

Budgeted production for October is

26514.

34860.

33940.

37110.

d. The predetermined overhead rate is calculated by

dividing the budgeted activity level of application base by the budgeted total manufacturing overhead.

multiplying the budgeted activity level of application base by the budgeted total manufacturing overhead.

multiplying the budgeted total manufacturing overhead by the budgeted activity level.

dividing the budgeted total manufacturing overhead by the budgeted activity level.

e. Steven Co. manufactures leather briefcases and carryalls. Stevens production manager has provided the following production budget. Each briefcase or carryall requires 1.2 yards of leather fabric and Steven maintains an ending inventory of leather fabric equal to 25% of the next months production needs.

	February	March	April	May	June
Budgeted production	51500	44800	60200	64700	57700

How many yards of leather fabric will Steven budget to purchase in May?

94950

77640

75540

62665