Albertville Inc produces leather handbags. The sales budget for the next four months is: July 5,200 units, August 7,600 units, September 7,500 units, October 8,300 units. Albertville Inc's ending finished goods inventory policy is 10% of the following month's sales. Each handbag requires 1.9 hours of unskilled labor (paid $15 per hour) and 3.2 hours of skilled labor (paid $23 per hour). How much is total labor cost during the three months July - September? A. $105,111 B. $1,572,631 C.$2,104,281 D.$2,091,261 2. Budgeted manufacturing overhead includes indirect manufacturing costs, but not selling or administrative costs.
A. True B. False 3. Budgeted cost of goods sold should include which of the following? Raw materials and direct labor. Raw materials, direct labor, manufacturing overhead, and selling expenses. Raw materials, direct labor, manufacturing overhead, selling expenses, and administrative expenses. Raw materials, direct labor, and manufacturing overhead. 4. Albertville has budgeted fixed overhead of $67,500 based on budgeted production of 4,500 units. During July, 4,700 units were produced and $71,400 was spent on fixed overhead. What is the fixed overhead volume variance? $900 favorable $3,900 unfavorable $900 unfavorable $3,000 favorable 5. The difference between the actual labor rate and the standard labor rate, multiplied by the actual labor hours is the direct labor efficiency variance. direct labor spending variance. direct labor volume variance. direct labor rate variance. 6.The production manager is typically responsible for the direct labor rate variance.