Budgeted selling price per unit Budgeted unit sales (all on credit): 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 $ 97 10,000 12,000 13,300 15,200 4 $1.00 2.5 $23.00 $9.00 $ 3.10 pounds $ 70,000 per pound 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 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 direct labor cost for February is closest to: direct labor-hours. per direct labor-hour per direct labor-hour per unit sold per month

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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):
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
$ 97
10,000
12,000
13,300
15,200
4
$1.00
2.5
$ 3.10
pounds
$23.00 per direct labor-hour
$9.00
per direct labor-hour
per unit sold
per month
$ 70,000
per pound
direct labor-hours.
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
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 direct labor cost for February is closest to:
Transcribed Image Text: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): 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 $ 97 10,000 12,000 13,300 15,200 4 $1.00 2.5 $ 3.10 pounds $23.00 per direct labor-hour $9.00 per direct labor-hour per unit sold per month $ 70,000 per pound direct labor-hours. 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 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 direct labor cost for February is closest to:
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