Multiple Choice, Question 93

Sudler Production is planning to sell 600 boxes of ceramic tile, with production estimated at 580 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.50 per pound and employees of the company are paid $15.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Sudler has 2,600 pounds of clay mix in beginning inventory and wants to have 3,000 pounds in ending inventory.

What is the total amount to be budgeted for direct labor for the month?

$34,800

$2,250

$8,700

$2,175

Multiple Choice, Question 94

Sudler Production is planning to sell 600 boxes of ceramic tile, with production estimated at 580 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.50 per pound and employees of the company are paid $15.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Sudler has 2,600 pounds of clay mix in beginning inventory and wants to have 3,000 pounds in ending inventory.

What is the total amount to be budgeted in pounds for direct materials to be purchased for the month?

25,920

25,120

26,800

25,520

Multiple Choice, Question 102

Reed Merchandising Company expects to purchase $90,000 of materials in July and $105,000 of materials in August. Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase.

How much will August's cash disbursements for materials purchases be?

$101,250

$67,500

$78,750

$105,000

Multiple Choice, Question 109

Faucet Company reported the following information for 2008:

October November December

Budgeted sales $620,000 $580,000 $720,000

All sales are on credit. Customer amounts on account are collected 50% in the month of sale and 50% in the following month.

How much cash will Faucet receive in November?

$600,000

$650,000

$580,000

$290,000

Multiple Choice, Question 110

The following information was taken from Sloan Company's cash budget for the month of July:

Beginning cash balance $240,000

Cash receipts 152,000

Cash disbursements 272,000

If the company has a policy of maintaining a minimum end of the month cash balance of $200,000, the amount the company would have to borrow is

$48,000.

$80,000.

$120,000.

$40,000.