Reference no: EM132533771
Question 1: DeGrom Corporation produces and sells Product "Mr. Met". To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month. Budgeted sales of Product "Mr. Met" over the next four months are:
June July August September
Budgeted sales in units 40,000 70,000 50,000 80,000
Budgeted production for August would be:
A) 57,500 units
B) 107,000 units
C) 70,000 units
D) 80,000 units
Question 2: On November 1, Brady Corporation has 200 units of leather footballs on hand. The company plans to sell 1,100 units of the product during November and plans to have 400 units on hand November 30. How many units must be produced during November?
A) 1,400
B) 1,500
C) 1,100
D) 1,300
Question 3: Graff Corporation manufactures and sells women's skirts. Each skirt (unit) requires 2.1 yards of cloth. Selected data from Graff master budget for next quarter are shown below:
July August September
Budgeted sales (in units) 7,000 8,000 10,000
Budgeted production (in units) 8,000 11,500 13,000
Each unit requires 0.8 hours of direct labor, and the average hourly cost of Graff direct labor is $18. What is the cost of Graff Corporation's direct labor in September?
A) $198,000
B) $158,400
C) $187,200
D) $234,000
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