Assume a companys direct labor budget for July estimates 10,000 labor-hours to meet the months production requirements. The variable manufacturing overhead rate used for budgeting purposes is $2.00 per direct labor-hour. The budgeted fixed manufacturing overhead for July is $60,000 including $7,000 of depreciation. What is the amount of budgeted cash disbursements for manufacturing overhead for July?

Multiple Choice

• $87,000

• $79,000

• $81,000

• $73,000

Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects cash sales of $26,000 and $42,500, respectively. It also expects credit sales of $52,500 and $62,500, respectively. The company expects to collect 30% of its credit sales in the month of the sale, 60% in the following month, and 10% is deemed uncollectible. What amount of cash collections would appear in the companys cash budget for the first month?

Garrison 17e Rechecks 2020-07-14

Multiple Choice

• $58,250

• $42,500

• $15,750

• $41,750

Assume a merchandising companys estimated sales for January, February, and March are $116,000, $136,000, and $126,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 15% of next months cost of goods sold. What are the required merchandise purchases for January?

Multiple Choice

• $67,800

• $81,600

• $71,400

• $79,400