DATA Units to be produced annually: 200,000 tins Direct labor: 1 hour per 100 ti
ID: 2449929 • Letter: D
Question
DATA
Units to be produced annually: 200,000 tins
Direct labor: 1 hour per 100 tins
Variable overhead costs per direct labor hour:
Indirect materials $2.05
Indirect labor $1.20
Utilities $9.25
Maintenance $3.50
Fixed overhead costs per quarter:
Insurance $3,000
Depreciation $2,000
Rent $12,000
What is the budgeted total manufacturing overhead for the year?
If Sales: 60,000 tins per quarter
Variable costs per dollar of sales: sales commissions 5%, delivery expense .5%, and advertising 1.5%.
Fixed costs per quarter: sales salaries $40,000, office rent $1,500, utilities $1,200, and repairs expense $200.
Selling price: $10 per tin
What is the budgeted total selling and administrative expenses for the quarter?
If Sales are 30% cash and 70% on credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale.Sales were December $180,000; January $220,000; February $250,000; and March $300,000.
What was total cash received in March?
Explanation / Answer
Total manufaturing overhead for year
No fo hours required for 200,000 tins = $200,000/100 = 2000 hours
Budgeted total selling and administrative expense for the quarter
Total cash recieved in march
Variable costs indirect material 2000 *2.05 $4,100 indirect labor 2000 *1.20 $2,400 Utilties 2000 *9.25 $18,500 Maintenance 2000*3.50 $7,000 Fixed Insurance $3,000 Depreciation $2,000 Rent $12,000 Total $49,000Related Questions
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