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Assume that a company provided the following information and assumptions from its master budget: Sales budget: Unit sales in June, July, and August are 20,000, 18,000, and 17,000, respectively. The selling price per unit is $80. All sales are on account. 20% of sales are collected in the month of sale and 80% are collected in the next month. Production budget: The ending finished goods inventory is always 25% of next month's unit sales. Direct labor budget. The direct labor-hours required per unit is 1.50 hours. The direct labor cost per hour is $18. Manufacturing overhead budget: The variable overhead rate is $2.00 per direct labor-hour. The total fixed manufacturing overhead is $70,000, which includes $12,000 of depreciation. What is the total budgeted manufacturing overhead cost for July? Multiple Choice $111,250 O $123,250 O$127.250 $135,250 9

Assume that a company provided the following information and assumptions from its master budget: Sales budget: Unit sales in June, July, and August are 20,000, 18,000, and 17,000, respectively. The selling price per unit is $80. All sales are on account. 20% of sales are collected in the month of sale and 80% are collected in the next month. Production budget: The ending finished goods inventory is always 25% of next month's unit sales. Direct labor budget. The direct labor-hours required per unit is 1.50 hours. The direct labor cost per hour is $18. Manufacturing overhead budget: The variable overhead rate is $2.00 per direct labor-hour. The total fixed manufacturing overhead is $70,000, which includes $12,000 of depreciation. What is the total budgeted manufacturing overhead cost for July? Multiple Choice $111,250 O $123,250 O$127.250 $135,250 9

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...
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Assume that a company provided the following information and assumptions from its master budget: Sales budget: Unit sales in June, July, and August are 20,000, 18,000, and 17,000, respectively. The selling price per unit is $80. All sales are on account. 20% of sales are collected in the month of sale and 80% are collected in the next month. Production budget: The ending finished goods inventory is always 25% of next month's unit sales. Direct labor budget. The direct labor-hours required per unit is 1.50 hours. The direct labor cost per hour is $18. Manufacturing overhead budget: The variable overhead rate is $2.00 per direct labor-hour. The total fixed manufacturing overhead is $70,000, which includes $12,000 of depreciation. What is the total budgeted manufacturing overhead cost for July? Multiple Choice $111,250 $123,250 $127,250 $135,250 9
Transcribed Image Text:Assume that a company provided the following information and assumptions from its master budget: Sales budget: Unit sales in June, July, and August are 20,000, 18,000, and 17,000, respectively. The selling price per unit is $80. All sales are on account. 20% of sales are collected in the month of sale and 80% are collected in the next month. Production budget: The ending finished goods inventory is always 25% of next month's unit sales. Direct labor budget. The direct labor-hours required per unit is 1.50 hours. The direct labor cost per hour is $18. Manufacturing overhead budget: The variable overhead rate is $2.00 per direct labor-hour. The total fixed manufacturing overhead is $70,000, which includes $12,000 of depreciation. What is the total budgeted manufacturing overhead cost for July? Multiple Choice $111,250 $123,250 $127,250 $135,250 9
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