Reference no: EM131682439

Assignemnt

Exhibit 18-4

Playtime Toys began operations on January 1, 2011. During January it produced 2,000 toys and sold 1,850 toys. The following are needed to make 1 toy:

Wood2 board feet at $3 per foot
Paint1.5 quarts at $2 per quart
Direct labor3 hours at $6 per hour

Manufacturing overhead is applied at a rate of $4 per direct labor hour.

1. Refer to Exhibit 18-4. Given the information above, the cost of direct materials used in January would be:
a. $11,100
b. $12,000
c. $16,600
d. $18,000

2. Cachet Inc. had a $93,000 balance in Accounts Receivable on July 1. In July, it expects to collect 55% of these receivables and 30% of the July credit sales, which are budgeted at $138,000. What is the budgeted accounts receivable at the end of July?
a. $138,450
b. $92,550
c. $41,400
d. $51,150

3. The following resources are required to make 1 batch of ice cream:
Milk 5 gallons at $2.50 per gallon
Sugar5 pounds at $0.30 per pound
Direct labor45 minutes at $12.00 per hour
Manufacturing overhead 30 minutes at $6.00 per h
Given this information, what is the cost of making 1 batch of ice cream?
a. $21.50
b. $23.00
c. $14.00
d. $26.00

4. Theodore's Musical Toys makes xylophones. Each xylophone takes 3 labor hours to make at a rate of $10.00 per hour. What is the budgeted production of xylophones if the budgeted direct labor cost for July is $16,200?
a. 540
b. 1,620
c. 5,400
d. 1,200

5. A department has a budgeted monthly manufacturing overhead cost of $160,000 plus $16 per direct labor hour. If a flexible budget reflects $388,000 for total manufacturing overhead cost for the month, the actual direct labor hours would be:
a. 24,250
b. 13,000
c. 12,250
d. 14,250

Exhibit 18-6

The July manufacturing overhead budget of Kyoto Corporation, shown below, was constructed assuming an activity level of 48,000 direct labor hours:

Variable costs:$48000
Indirect labor$48,000
Indirect materials $24,000
Factory supplies 19,200 $ 91,200

Fixed costs:
Depreciation$38,400
Supervision $69,600
Property taxes $36,000 $144,000

Total overhead costs$235,200

6. Refer to Exhibit 18-6. If management prepared a flexible budget for July using 54,000 direct labor hours, what amount would this flexible budget show for indirect labor?
a. $27,000
b. $48,000
c. $54,000
d. $102,600

7. Refer to Exhibit 18-6. If management prepared a flexible budget for July using 40,000 direct labor hours, what amount would this flexible budget show for total variable costs?
a. $83,600
b. $76,000
c. $87,200
d. $91200

8. Refer to Exhibit 18-6. If management prepared a flexible budget for July using 52,000 direct labor hours, what amount would this flexible budget show for total overhead costs?
a. $239,200
b. $254,800
c. $235,200
d. $242,800

Exhibit 18-7

Cedar Corporation uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows:

Indirect labor$12.00
Indirect materials6.00
Maintenance2.00
Utilities1.00

Fixed overhead costs per month are:
Supervision$8,000
Insurance1,600
Factory rent1,300
Depreciation1,900

9. Refer to Exhibit 18-7. If Cedar prepares a flexible budget for 4,000 direct labor hours, what amount will this budget show for variable manufacturing overhead costs?
a. $109,600
b. $42,000
c. $8,400
d. $84,000

10. Refer to Exhibit 18-7. If Cedar prepares a flexible budget for 6,000 direct labor hours, what amount will this budget show for total manufacturing overhead costs?
a. $134,000
b. $138,800
c. $126,000
d. $12,800.