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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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