Reference no: EM1310989
Calculation of budgeted department cost, production unit, direct material purchase cost & direct labour cost.
1. At the beginning of the period, the Assembly Department budgeted direct labour of $110,500 and property taxes of $50,000 for 8,500 hours of production. The department actually completed 10,000 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting. What is the total department cost?
a) $110,000
b) $130,000
c) $180,000
d) None of the above
2. On Time Publishers Inc. projected sales of 220,000 schedule planners for 2008. The estimated January 1, 2008, inventory is 15,000 units, and the desired December 31, 2008, inventory is 11,000 units. What is the budgeted production (in units) for 2008? What is the total units to be produced?
a) 235,000
b) 216,000
c) 231,000
d) None of the above
3. On Time Publishers Inc. budgeted production of 216,000 schedule planners in 2008. Paper is required to produce a planner. Assume 90 square feet of paper are required for each planner. The estimated January 1, 2008, paper inventory is 100,000 square feet. The desired December 31, 2008, paper inventory is 160,000 square feet. If paper costs $0.08 per square foot determine the direct materials purchases budget for 2008. What is the total direct material to be purchased?
a) $1,560,000
b) $2,240,000
c) $1,568,000
d) None of the above
4. On Time Publishers Inc. budgeted production of 216,000 schedule planners in 2008. Each planner requires assembly. Assume that 15 minutes are required to assemble each planner. If assembly labour costs $12.50 per hour, determine the direct labour cost budget for 2008. What is the total direct labour cost?
a) $600,000
b) $675,000
c) $725,000
d) None of the above