Question #16 starts in the bottom of the first page and continues onto the top of the second page.

Trago Company manufactures a single product and has a JIT policy that ending inventor month's sales. It estimates that May's 280,000 and 290,000 units, respectively. Trago assigns overhead equals $400,000 per total budgeted overhead that would appear on the factory ending inventory will consist of 14,000 units. June and July sales are estimated to be variable overhead at a rate of $1.80 per unit of production. Fixed month Compute the number of units to be produced and use this amount to compute the overheed budget for the month of June $920,200 O $904.900. O $930,100o $922.000. O $878,800 References Learning Objective: 20-P1 Prepare each component of a master budget-for a manufacturing company Multiple Choice Difficulity 3 Hard 6. Award: 10.00 points Zhang Industries budgets production of 300 units in June and 310 units material K, which costs $5 per pound. Each month's ending inventory of raw materials should be 30% of the following in July. Each finished unit requires 4 pounds of raw morth's budgeted production. The june 1 raw materials Inventory has 360 pounds of rew cost of purchases for raw material K for June material K. Compute budgeted $4.400. O $6,000 $6,200. $6,060. O $6,100 Multiple Choiceuiy 3 Hard uemager bucpet for a mndacthuring company Learning Objective: 20-P1 Prepare each of a master budget-for a manufacturing company 17. Award:10.00 points Butler Corporation is considering the purchase of new equipment costing $30,000. The projected annual after-tax net income from the equipment is $1,200, after deducting S10,000 for depreciation. The revenue is to be received at the end Of each year. The machine has a useful ife of 3 years and no salvage value. Butler requires a t2% return on its meestments The present value of an annuity of $1 for different periods follows: 12% 0.8929 16901 2.4018 3.0373 Periods What is the net present value of the machine? O $24,018. O $(3,100 $30,000. O $26,900 o $(29,520 References Multiple Choice Difficulity: 3 Hard Learning Objective: 24-P3 Compute net present value and describe its use. 18. Award 10.00 points