Bonkowski Corporation makes one product and has provided the following Information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit Budgeted unit sales (all on credit): $ 97 January February March April Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate Predetermined overhead rate (all variable) Variable selling and administrative expense Fixed selling and administrative expense Credit sales are collected: 30% In the month of the sale 70% In the following month Raw materials purchases are paid: 30% In the month of purchase 70% In the following month 10,000 12,000 13,300 15,200 4 pounds $ 1.00 per pound 2.5 direct labor-hours $ 23.00 per direct labor-hour $9.00 per direct labor-hour $ 3.10 per unit sold $ 70,000 per month B The ending finished goods Inventory should equal 30% of the following month's sales. The ending raw materials Inventory should equal 10% of the following month's raw materials production needs. The estimated cost of goods sold for February is closest to: Multiple Choice $270,000 $1,008,000 $846,000

Bonkowski Corporation makes one product and has provided the following Information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit Budgeted unit sales (all on credit): $ 97 January February March April Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate Predetermined overhead rate (all variable) Variable selling and administrative expense Fixed selling and administrative expense Credit sales are collected: 30% In the month of the sale 70% In the following month Raw materials purchases are paid: 30% In the month of purchase 70% In the following month 10,000 12,000 13,300 15,200 4 pounds $ 1.00 per pound 2.5 direct labor-hours $ 23.00 per direct labor-hour $9.00 per direct labor-hour $ 3.10 per unit sold $ 70,000 per month B The ending finished goods Inventory should equal 30% of the following month's sales. The ending raw materials Inventory should equal 10% of the following month's raw materials production needs. The estimated cost of goods sold for February is closest to: Multiple Choice $270,000 $1,008,000 $846,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 3PB: Budgeted income statement and supporting budgets The budget director of Gold Medal Athletic Co.,...

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Georgia Gasket Co. budgets 8,000 direct labor hours for the year. The total overhead budget is expected to amount to 20,000. The standard cost for a unit of the companys product estimates the variable overhead as follows: The actual data for the period follow: Using the four-variance method, calculate the overhead variances. (Hint: First compute the budgeted fixed overhead rate.)
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Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: At the beginning of March, Salisburys management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for March. c. Interpret the budget performance report.
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