1. Bradley Co. budgets its total production costs at $220,000 for 75,000 units of output and $275,000 for 100,000 units of output. Since additional facilities are needed to produce 100,000 units, fixed costs are budgeted at 20% more than for 75,000 units. What is Bradley's budgeted fixed cost at 100,000 units? A. 165,000 B. 156,000 C. 66,000 D. 16,500 2.Smart Company is relocating its facilities. The company estimates that it will take three trucks to move office contents. If the per truck rental charge is $1,000 plus 25 cents per mile, what is the expected cost to move 800 miles? A. $1,000 B.$1,200 C. $2,400 3. The following cost functions were developed for manufacturing overhead costs: Manufacturing Overhead Cost Cost Function Electricity Maintenance Supervisors' salaries D. $3,600 $100+$20 per direct labor hour $200 $30 per direct labor hour $10,000 per month $16 per direct labor hour Indirect materials If July production is expected to be 1,000 units requiring 1,500 direct labor hours, estimated manufacturing overhead costs would be A. $109,300 B.$99,000 C.$76,300 D.$10,366
1. Bradley Co. budgets its total production costs at $220,000 for 75,000 units of output and $275,000 for 100,000 units of output. Since additional facilities are needed to produce 100,000 units, fixed costs are budgeted at 20% more than for 75,000 units. What is Bradley's budgeted fixed cost at 100,000 units? A. 165,000 B. 156,000 C. 66,000 D. 16,500 2.Smart Company is relocating its facilities. The company estimates that it will take three trucks to move office contents. If the per truck rental charge is $1,000 plus 25 cents per mile, what is the expected cost to move 800 miles? A. $1,000 B.$1,200 C. $2,400 3. The following cost functions were developed for manufacturing overhead costs: Manufacturing Overhead Cost Cost Function Electricity Maintenance Supervisors' salaries D. $3,600 $100+$20 per direct labor hour $200 $30 per direct labor hour $10,000 per month $16 per direct labor hour Indirect materials If July production is expected to be 1,000 units requiring 1,500 direct labor hours, estimated manufacturing overhead costs would be A. $109,300 B.$99,000 C.$76,300 D.$10,366
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Please answer numbers 1-3.
Transcribed Image Text:1. Bradley Co. budgets its total production costs at $220,000 for 75,000 units of output and $275,000
for 100,000 units of output. Since additional facilities are needed to produce 100,000 units, fixed costs
are budgeted at 20% more than for 75,000 units. What is Bradley's budgeted fixed cost at 100,000
units?
A. 165,000 B. 156,000 C. 66,000 D. 16,500
2.Smart Company is relocating its facilities. The company estimates that it will take three trucks to
move office contents. If the per truck rental charge is $1,000 plus 25 cents per mile, what is the
expected cost to move 800 miles?
A. $1,000
B.$1,200
C. $2,400
3. The following cost functions were developed for manufacturing overhead costs:
Manufacturing Overhead Cost
Cost Function
Electricity
Maintenance
Supervisors' salaries
D. $3,600
$100+$20 per direct labor hour
$200 $30 per direct labor hour
$10,000 per month
$16 per direct labor hour
Indirect materials
If July production is expected to be 1,000 units requiring 1,500 direct labor hours, estimated
manufacturing overhead costs would be
A. $109,300 B.$99,000 C.$76,300
D.$10,366
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