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Fuson Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: 19
Fuson Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: 19 Budgeted selling price per unit Budgeted unit sales (all on credit) 118 Skipped October 9,600 10,100 November 13,700 11,300 December January Raw materials requirement per unit of 3 pounds output Raw materials cost 4.00 per pound Direct labor requirement per unit of output direct labor- 2.7 hons $23.00 per direct labor- hour Direct labor waqe rate $12 00 per direct labor- hour Predetermined overhead rate (all variable) Credit sales are collected: 30% in the month of the sale 70% in the following month Raw materlals purchases are paid 30% in the month of purchase 70% In the following month The ending finished goods inventory should equal 10% of the followling month's sales. The ending raw materials inventory should equal 10 % of the following month's raw materials production needs. If the budgeted cost of raw materlals purchases in October is $116,772 and in November is $129,120, then in November the total budgeted cash disbursements for raw materials purchases is closest to Multiple Choice $81,740 $90.384 $38.736 $120.476
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