12. Nguyen plans to sell 40,000 units of product no. 75 in June, and each of the
ID: 2501480 • Letter: 1
Question
12. Nguyen plans to sell 40,000 units of product no. 75 in June, and each of these units requires five square feet of raw material. Pertinent data follow.
11,000 square feet.
23,000 square feet.
None of the other answers are correct.
13,000 square feet.
25,000 square feet.
27. Digregory makes all purchases on account, subject to the following payment pattern:
Paid in the month of purchase: 30%
Paid in the first month following purchase: 60%
Paid in the second month following purchase: 10%
If purchases for January, February, and March were $192,000, $172,000, and $222,000, respectively, what were the firm's budgeted payments in March?
Some other amount.
$133,200.
$66,600.
$169,800.
$189,000.
28. Northcutt's production data for a new deluxe product were taken from the most recent quarterly production budget:
In addition, Northcutt produces 5,600 units a month of its standard product. It takes 2 direct labor hours to produce each standard unit and 2.25 direct labor hours to produce each deluxe unit. Northwest's cost per labor hour is $16. Direct labor cost for August would be budgeted at:
Some other amount.
$229,600.
$243,200.
$226,000.
$246,400.
31. The master budget contains the following components, among others: (1) direct-material budget, (2) budgeted balance sheet, (3) production budget, and (4) cash budget. Which of these components would be prepared first and which would be prepared last?
Choice C
Choice B
Choice D
Choice E
Choice A
32. The following data relate to the Lisle Company for May and August of the current year:
The fixed maintenance cost is $725,000 per month.
The variable maintenance cost is $45 per hour.
The variable maintenance cost is $47 per hour.
33. Springer began business at the start of the current year. The company planned to produce 40,000 units, and actual production conformed to expectations. Sales totaled 37,000 units at $42 each. Costs incurred were:
$592,000.
None of the other answers are correct.
$155,000.
$230,000.
$240,500.
More than one of the other answers is true.
The variable maintenance cost is $43 per hour.
July August September Planned production in units 1,300 1,400 1,280Explanation / Answer
Answer for question no.12:
Answer is none of the answers are correct..
In order to determine closing stock information about three things is essential, i.e., Opening stock, Purchases and material consumed, only information about two things is provided i.e., Purchases and Raw material consumed. The formula to determine closing stock is Opening stock + Purchases - Material consumed. Hence the answer is none of the answer is correct.
Answer for question no,27:
Answer is 189,000.
Workings are as below:
Answer for question no,28:
Answer is $229,600
Workings are as uner:
Number of units of new product to be produced in the month of August =1,400 units.
Number of direct labour hours required to produce one unit of new product =2.25 hours.
Total direct labour hours required to produce 1400 units of deluxe units =2.25*1,400
=3,150 --------------(A).
Number of standard units to be produced =5,600 units.
Number of direct labour hours required to produce one unit of standard product =2. hours.
Total direct labour hours required to produce 5600 units of Standard units =2.* 5,600
=11,200 hours.-----------(b)
Total direct labour hours required to produce in the month of August= A+B
=14,350.
Total direct labour cost @$16 per hour =14,350*$16
=$229,600.
Answer for question no.31:
Answer is first Production budget is prepared and last is the balancesheet.
Because raw material budget required first how much of the production is required to be made, it cannot be first and the cash budget requires data about purchases of raw materials hence, it cannot be first budget.
Last budget is the balancesheet, because all the budgets culminate into it.
Answer for question no.32:
Answer is fied cost of maintenance is $725,000.
Workings are as under
Variable cost =Difference in cost/Difference in units
=$72,000/$4,000
=$18 per hour
Therefore fixed maintenance cost = Total overhead cost - Variable cost
=$1,175,000 - 25000*18
=$725,000.
Particulars January February March April May Purchases $192,000.00 $172,000.00 $222,000.00 Payment 30% in the same month $57,600.00 $51,600.00 $66,600.00 60% in the first month after purchase $115,200.00 $103,200.00 $133,200.00 $0.00 10% in the second month after purchase $19,200.00 $17,200.00 $22,200.00 Total collected $57,600.00 $166,800.00 $189,000.00 $150,400.00 $22,200.00Related Questions
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