Northcutt\'s production data for a new deluxe product were taken from the most r

Question

Northcutt's production data for a new deluxe product were taken from the most recent quarterly production budget:

In addition, Northcutt produces 4,500 units a month of its standard product. It takes 2 direct labor hours to produce each standard unit and 2.50 direct labor hours to produce each deluxe unit. Northwest's cost per labor hour is $15. Direct labor cost for August would be budgeted at:

$166,875.

$163,125.

$191,250.

$194,250.

Some other amount.

Northcutt's production data for a new deluxe product were taken from the most recent quarterly production budget:
   

In addition, Northcutt produces 4,700 units a month of its standard product. It takes 2 direct labor hours to produce each standard unit and 2.50 direct labor hours to produce each deluxe unit. Northwest's cost per labor hour is $14. Direct labor cost for the quarter would be budgeted at:

$451,425.

$466,025.

$480,100.

$486,850.

Some other amount.

Quattro began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for April, May, and June were $58,000, $78,000, and $68,000, respectively, what were the firm's budgeted collections for April?

$17,400.

$20,400.

$58,200.

$40,600.

Some other amount.

Explanation / Answer

Q1. Answer is $ 166,875 Explanation: Budgeted labour cost: labour hours required for New deluxe (850*2.50) 2125 Labour hours fr Standard (4500*2) 9000 Budgetd labour hours 11125 Labour rate per hour 15 Budgeted labour cost: 166875 Q2. Answer is $486,850 Explanation: LABOUR COST BUDGETS July Aug Sep QUARTER-4 Deluxe units produced 850 950 830 2,630 Standard units produced 4,700 4,700 4,700 14,100 Hours required for deluxe @2.50 2,125 2,375 2,075 6,575 labour req for standard @2 hour 9400 9400 9400 28200 Labour hours 11525 11775 11475 34775 Labuor Rate per hour 14 14 14 14 Budgeted Labour cost in $ 161,350 164,850 160,650 486,850 Q3. Answer is $17400 Explanation: April colections: April sales 58000 Collection in the month of sale 30% Budgeted collection for April 17400

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