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Casteel, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard

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Casteel, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: Standard Standard Price or Standard Quantity Rate Cost Direct materials 1.5 pounds $3.00 per pound $4.50 Direct labor 0.6 hours $6.00 per hour $3.60 Variable manufacturing 0.6 hours $1.25 per hour $0.75 overhead During March, the following activity was recorded by the company: The company produced 3,800 units during the month. A total of 5,600 pounds of material were purchased at a cost of $23,000. There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,100 pounds of material remained in the warehouse. During March, 1,600 direct labor-hours were worked at a rate of $6.50 per hour. Variable manufacturing overhead costs during March totaled $1,800. The direct materials purchases varience is computed when the materials are purchased The materials quantity variance for March is: Select one: a. $-6,600.00 b. $6,000.00 c. $-13,200.00 O d. $12,000.00 Zinger Corporation has budgeted sales over the next four months below: September October November December Budgeted Sales... $140,000 $150,000 $170,000 $130,000 Twenty five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 48% of a month's credit sales are collected in the month of sale, 34% are collected in the month following sale, and 7% are collected in the second month following sale. The remainder are uncollectible. Given these data, cash collections for December should be: Select one: O a. $130,525.00 O b. $98,025.00 c. $163,200.00 O d. $370,000.00

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