Frolic Corporation has budgeted sales and production over the next quarter as follows:

	July			August		September
Sales in units	47,000			59,000		?
Production in units	47,500			59,300		63,650

The company has 5,400 units of product on hand at July 1. 10% of the next month's sales in units should be on hand at the end of each month. October sales are expected to be 78,500 units. Budgeted sales for September would be (in units):

Garrison 16e Rechecks 2017-09-30, 2017-10-31

Multiple Choice

• 69,550

• 71,500

• 62,000

• 71,000

Avril Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $4.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $54,080 per month, which includes depreciation of $3,840. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates that 3,200 direct labor-hours will be required in October.

The October cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Multiple Choice

• $14,720

• $64,960

• $50,240

• $68,800

Pooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.75 direct labor-hours. The direct labor rate is $10.00 per direct labor-hour. The production budget calls for producing 7,100 units in April and 6,900 units in May. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months?

Multiple Choice

• $106,550.00

• $120,750.00

• $105,000.00

• $109,600.00