Question 38 Hendrix Company\'s direct materials budget shows total cost of direc

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Question 38 Hendrix Company's direct materials budget shows total cost of direct materials purchases for January $125,000, February $150,000 and March $175,000. Cash payments are 60% in the month of purchase and 40% in the following month. The budgeted cash payments for March are Answer A. $130,000. B. $150,000. C. $160,000. D. $165,000. Question 39 A company budgeted unit sales of 136,000 units for January, 2011 and 160,000 units for February, 2011. The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month's budgeted unit sales. If there were 40,800 units of inventory on hand on December 31, 2010, how many units should be produced in January, 2011 in order for the company to meet its goals? Answer 143,200. 136,000 units 128,800 units 184,000 units Question 40 Neal 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? Answer $78,750 $105,000 $67,500 $101,250 Question 41 In the Klugman Company, indirect labor is budgeted for $54,000 and factory supervision is budgeted for $18,000 at normal capacity of 80,000 direct labor hours. If 90,000 direct labor hours are worked, flexible budget total for these costs is: Answer A. $81,000. B. $72,000. C. $74,250. D. $78,750. Question 42 At 9,000 direct labor hours, the flexible budget for indirect materials is $18,000. If $18,700 are incurred at 9,200 direct labor hours, the flexible budget report should show the following difference for indirect materials: Answer $300 U. $300 F. $700 U. $700 F.

Explanation / Answer

C. $160,000 Amount paid for February's purchases in March =150,000*.60 = 90,000 Amount paid for March's purchases in March =175,000*.40 = 70,000 Total paid = 90,000 + 70,000 = 160,000 answr: $160,000

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