Reference no: EM133169971
Questions -
Q1. Blake Company has $28,000 cash at the beginning of June and anticipates $73,400 in cash receipts and $47,500 in cash disbursements. The company requires a minimum cash balance of $33,000. Any excess cash over the minimum desired balance is used to pay down debts. Blake has an agreement with its bank to borrow as needed or to repay loans as funds become available. As of May 31, the company owes $28,000 to the bank. The balance of the loan on June 30 will be:
A) $7,100.
B) $12,100.
C) $28,000.
D) $35,100.
E) $48,900.
Q2. Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019:
Denominator volume-number of units 7,000
Denominator volume-percent of capacity 70 %
Denominator volume-standard direct labor hours (DLHs) 35,000
Budgeted variable factory overhead cost at denominator volume $ 102,700
Total standard factory overhead rate per DLH $15.10
2019, Bluecap worked 39,000 DLHs and manufactured 9,000 units. The actual factory overhead cost for the year was $15,000 greater than the flexible budget amount for the units produced, of which $5,000 was due to fixed factory overhead. In preparing a budget for 2020 Bluecap decided to raise the level of operation to 90% of capacity (a level it considers to be "practical capacity"), to manufacture 8,400 units at a budgeted total of 25,200 DLHs.
Under the assumption that the total budgeted fixed overhead for 2020 is the same as it was for 2019, what is the standard fixed overhead application rate per DLH (to two (2) decimal places) for Bluecap Co. for 2020? (Round your intermediate calculation to 2 decimal places.)
A) $11.60.
B) $11.80.
C) $14.20.
D) $16.60.
E) $16.90.