Hulk Fumiture Company plans to assemble 3,500 cupboards. Each cupboard requires
ID: 2484224 • Letter: H
Question
Hulk Fumiture Company plans to assemble 3,500 cupboards. Each cupboard requires 0.60 hours of sirect labor $14 per direct labor hour. This amount of direct labor dollars that should be budgeted for is: $49,000 $5,833 $29,400 $81,666 Hulk Fumiture Company plans to assemble 3,500 cupboards. Each cupboard requires 13 bd. FL of lumber at a price of $3.25 per board foot. The desired beginning and ending inventories of lumber are 5,500 and 10,000 board feet, respectively. The total direct materials purchase cost for lumber is $147,875 $198,250 $175,000 $162,500 Teldar Company budgeted $45,000 In variable factory overhead costs and $15,000 In fixed factory overhead costs for the production of 6,000 units requiring 9,000 direct labor hours. The standard factory overhead rate per direct labor hour end the standard overhead cost per unit are: $512,50 and $6.25 respectively $1.67 and $2.50 respectively. $5.00 end $2.50 respectively. $6.67 and $10.00 respectively In__both significant unfavorable and favorable differences from standard are the local point management attention. Critical incidents method Management by exception Contingency approach Management by objectivesExplanation / Answer
A
The amount of direct labor dollar=3500*0.6*14
=29400
B
Board feet required for 3500 cupboards= 3500*13
=45500
Purchases= 45500+10000-5500
=50000
Total direct material purchases cost =50000*$3.25
=$162,500
C
Total overhead cost=$45000+$15000
=$60000
Standard factory overhead rate per direct labor hour= 60000/9000
=$6.67
Standard factory cost per unit=60000/6000
=$10
D
Management by exception
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