Question
Dakota Products has a production budget as follows: May, 16,500 units; June, 19,500 units; and July, 24,500 units. Each unit requires 2 pounds of raw
Dakota Products has a production budget as follows: May, 16,500 units; June, 19,500 units; and July, 24,500 units. Each unit requires 2 pounds of raw material and 2.5 direct labor hours. Dakota desires to keep an inventory of 10% of the next months requirements on hand. On May, 1 there were 3,300 pounds of raw material in inventory. Direct labor hours required in May would be: |
a.) 43,725 hours
b.) 41,250 hours
Manufacturing overhead is applied based on budgeted direct labor-hours. The direct labor budget indicates that 6,300 direct labor-hours will be required during the year. The variable overhead rate is $4.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $96,390 per year, which includes depreciation of $20,600. All other fixed manufacturing overhead costs represent current cash flows. The predetermined overhead rate for would be: (Round your answer to 2 decimal places.) |
a.) $16.33
b.) $19.60
Waggoner Company has a cash balance of $44,500 on April 1. The company is required to maintain a cash balance of $26,000. During April expected cash receipts are $173,000. Expected cash disbursements during the month total $199,600. During April the company will need to borrow: |
a.) $8,100.
b.) $26,600.
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