Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: a. The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500,10,600,12,000, and 11,700 units, respectively. All sales are on credit. b. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 30% of the following month's sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $4.00 per pound. e. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month. f. The direct labor wage rate is $2300 per hour. Each unit of finished goods requires 26 direct labor-hours. g. Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour. h. The variable selling and administrative expense per unit sold is $1,70. The fixed selling and administrative expense per month is $70,000. The budgeted required production for February is closest to: Multiple Choice 11,020 units 14,200 units Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 5,700 units, but its actual level of activity was 5,660 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting The overall revenue and spending variance (i.e, the variance for net operating income in the revenue and spending variance column on the flexlble budget performance report) for June would be closest to:performance report) for June would be closest to: TB MC Qu. 8-141 (Static) Petrini Corporation makes one product... Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: a. The budgeted selling price per unit is $110. Budgeted unit sales for January. February, March, and April are 7,500, 10,600, 12,000, and 11,700 units, respectively. All sales are on credit. b. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 30% of the following month's sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 . pounds of raw materials. The raw materials cost $4.00 per pound. e. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month. f. The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 26 direct labor-hours. g. Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour. h. The variable selling and administrative expense per unit sold is $170. The fixed selling and administrative expense per month is $70,000. The budgeted required production for February is closest to: The budgeted required production for February is closest to Multiple Choice 11,020 units 14,200 units 10,600 unfts 17,380 units TB MC Qu. 9-238 (Algo) Trevorrow Corporation manufactures... Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 5,700 units, but its actual level of activity was 5,660 units. The company has provided the following data concerming the formulas used in its budgeting and its actual results for June: Data used in budgeting: The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for June would be closest to: Multiple Choice $6,310U $6,310F $6,830 $6.830F