The following partially completed T-accounts summarize the transactions of Belson Company for last year:

Raw Materials

Beg. Bal.	4,300		(2)	18,600
(1)	15,600

Work in Process

Beg. Bal.	8,300		(7)	59,300
(2)	12,300
(4)	15,300
(6)	28,300

Manufacturing Overhead

(2)	6,300		(6)	28,300
(3)	13,300
(4)	5,300
(5)	2,300

Cost of Goods Sold

Accounts Payable

			(1)	15,600
			(5)	2,300

Finished Goods

Beg. Bal.	15,300
(7)	59,300
End. Bal.	12,300

Wages and Salaries Payable

			Beg. Bal.	4,300
			(4)	28,900

Sales Salaries Expense

(4)	8,300

Accumulated Depreciation (Factory)

			Beg. Bal.	76,500
			(3)	13,300

At the end of the year, the company closes out the balance in the Manufacturing Overhead account to Cost of Goods Sold.

The indirect labor cost is:

$28,900

$12,300

$15,300

$5,300

Froment Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,500 units. The costs and percentage completion of these units in beginning inventory were:

	Cost	Percent Complete
Materials costs	$4,900	50%
Conversion costs	$2,500	15%

A total of 12,700 units were started and 11,700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Materials costs	$220,700
Conversion costs	$288,500

The ending inventory was 65% complete with respect to materials and 25% complete with respect to conversion costs.

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

The total cost transferred from the first processing department to the next processing department during the month is:

$516,600

$474,341

$575,696

$509,200

Diltex Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:

Sales are budgeted at $300,000 for November, $280,000 for December, and $290,000 for January. Collections are expected to be 67% in the month of sale, 30% in the month following the sale, and 3% uncollectible. The cost of goods sold is 65% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 60% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $26,500. Monthly depreciation is $17,500. Ignore taxes.

Statement of Financial Position October 31
Assets
Cash	$24,000
Accounts receivable (net of allowance for uncollectible accounts)	80,000
Merchandise inventory	117,000
Property, plant and equipment (net of $(expression error) accumulated depreciation)	964,000
Total assets	$1,185,000

Liabilities and Stockholder' Equity
Accounts payable	$132,000
Common stock	900,000
Retained earnings	153,000
Total liabilities and stockholder' equity	$1,185,000

The net income for December would be:

$71,500

$45,600

$54,000

$51,060

Young Enterprises has budgeted sales in units for the next five months as follows:

June	5,500 units
July	8,100 units
August	6,300 units
September	7,700 units
October	4,700 units

Past experience has shown that the ending inventory for each month should be equal to 10% of the next month's sales in units. The inventory on May 31 fell short of this goal since it contained only 500 units. The company needs to prepare a Production Budget for the next five months. The total number of units to be produced in July is:

8,730 units

8,100 units

7,920 units

8,280 units

LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 1.5 hours of direct labor at the rate of $5.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June. The company plans to sell 25,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 600 and 120 units, respectively. Budgeted direct labor costs for June would be:

$191,100

$187,500

$122,600

$183,900

Tolentino Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During November, the kennel budgeted for 4,000 tenant-days, but its actual level of activity was 4,050 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:

Data used in budgeting:

	Fixed element per month	Variable element per tenant-day
Revenue		$31.70
Wages and salaries	$2,800	$7.00
Expendables	900	11.30
Facility expenses	8,300	3.20
Administrative expenses	7,900	0.40
Total expenses	$19,900	$21.90

Actual results for November:

Revenue	$123,185
Wages and salaries	$30,590
Expendables	$48,021
Facility expenses	$17,210
Administrative expenses	$8,675

The net operating income in the flexible budget for November would be closest to:

$19,790

$39,200

$19,300

$39,690

The Reedy Company uses a standard costing system. The following data are available for November:

Actual direct labor-hours worked	4,300	hours
Standard direct labor rate	$7.90	per hour
Labor rate variance	$1,290	favorable

The actual direct labor rate for November is:

$7.75

$8.20

$7.90

$7.60

Stuchlik Catering uses two measures of activity, jobs and meals, in the cost formulas in its flexible budgets. The cost formula for catering supplies is $640 per month plus $84 per job plus $20 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in January to be 49 jobs and 230 meals, but the actual activity was 50 jobs and 235 meals. The actual cost for catering supplies in January was $7,600. The catering supplies in the planning budget for January would be closest to:

$7,600

$9,440

$9,356

$9,540

Diorio Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:

	Hours
Move time	3.1
Wait time	21.9
Queue time	5.7
Process time	1.8
Inspection time	0.1

The throughput time was:

5.0 hours

10.7 hours

32.6 hours

27.6 hours

Hoster Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:

	Hours
Move time	3.9
Wait time	14.6
Queue time	4.5
Process time	2.2
Inspection time	0.7

The throughput time was:

11.3 hours

19.1 hours

6.8 hours

25.9 hours

Aide Industries is a division of a major corporation. Data concerning the most recent year appears below:

Sales	$19,000,000
Net operating income	$998,000
Average operating assets	$5,600,000

The division's margin is closest to:

17.8%

5.3%

29.5%

34.7%