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Assuming the amount budgeted to be produced in January is 30

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1. Fantastic Futons go through two departments in the production process. Each futon requires two direct labor hours in Department A and one hour in Department B. the labor cost is $8 per hour in Department A, and $10 per hour in Department B.

Assuming the amount budgeted to be produced in January is 30,000 units, what is the budgeted direct labor cost for January?

$840,000
$810,000
$540,000
$780,000

2. Continuing with Fantastic Futons:

Fantastic Futons go through two departments in the production process. Each futon requires two direct labor hours in Department A and one hour in Department B. Labor cost is $8 per hour in Department A and $10 per hour in Department B.

The labor capacity for a normal eight-hour shift for a month is 50,000 direct labor hours each for both Departments A and B. Overtime is paid at time and a half. What would be the budgeted direct labor costs for January, assuming a budgeted production of 30,000 units?

$420,000
$780,000
$820,000
$900,000

3. Continuing with Fantastic Futons:

Fantastic Futons go through two departments in the production process. Each futon requires two direct labor hours in Department A and one hour in Department B. Labor cost is $8 per hour in Department A and $10 per hour in Department B.

The budgeted manufacturing overhead rate is $5 per direct labor hour. What is the budgeted manufacturing overhead cost for January given a budget production of 30,000 units?

$450,000
$150,000
$300,000
$330,000

4. Leaverton's forecast of sales is as follows: July, $60,000; August, $90,000; September, $130,000. Sales are normally 80% cash and 20% credit in any month. Credit sales are collected in full in the following month. Merchandise cost averages 60% of the sales price. The company desires an inventory as of September 30 of $52,000. The inventory as of June 30 was $25,000.

Total purchases that must be made in order to meet the sales and inventory requirement for the quarter amount to:

$141,000
$195,000
$307,000
$253,000

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