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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: Budgeted
Fuson Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit Budgeted unit sales (all on credit): 118 October 9,600 November 10,100 December 13,700 11,300 January Raw materials requirement per unit of output 3 pounds $ 4.00 per pound Raw materials cost Direct labor requirement per unit of output 2.7 direct labor-hours $23.00 Der direct labor- hour Direct labor wage 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 materials purchases are paid: 30% in the month of purchase 70% in the following month The ending finished goods inventory should equal 10% of the following month's sales. The ending raw materials inventory should equal 10% of the following month's raw materials production needs. The budgeted accounts receivable balance at the end of November is closest to: Multiple Choice $795,000 $357,540 $1,191,800 $834,260
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