Question 23

Bigelow Company employs 8 staff members who earn an average salary of $42,000 per year each. As part of a profit-sharing plan, each employee receives their monthly salary plus a percentage of the monthly profit. The June payroll expense budget has a total payroll of $34,500 and a budgeted profit of $65,000. Profit for July is budgeted to be $82,000, while purchases of inventory for July are budgeted at $295,000. The purchase of $10,000 in office equipment and $5,000 in furniture are expected to occur in August. How much will each employee earn in salary and profit sharing, in July?

A.Each employee will earn $12,961 in salary and bonus in July.

B.Each employee will earn $11,700 in salary and bonus in July.

C.Each employee will earn $4,525 in salary and bonus in July.

D.Each employee will earn $3,592 in salary and bonus in July.

E.Each employee will earn $4,313 in salary and bonus in July.

Question 2)

Dazzle Toy Company gathered the following actual results for the current month that just ended: Actual production 4,000 units Direct materials purchased and used (5,000 kgs) $22,500 Direct labour cost (4,500 hours) $51,750 Manufacturing overhead costs incurred $24,000 Dazzle's standard cost and budget information are as follows: Budgeted production 3,500 units Direct materials 2 kgs/unit at $4.25 per unit Direct labour 1.5 hrs/unit at $12 per hour Variable manufacturing overhead $5 per unit Fixed manufacturing overhead $21,000 Based on the above information, what was the Direct Labour Efficiency Variance for Dazzle Toy Company? A. Direct Labour Efficiency Variance = $18,000 F. B. Direct Labour Efficiency Variance = $3,000 F. C. Direct Labour Efficiency Variance = $9,000 U. OD. Direct Labour Efficiency Variance = $18,000 U. O E. Direct Labour Efficiency Variance = $9,000 F