Response to the following :
Exhibit 18-4
1. Playtime Toys began operations on January 1, 2011. During January it produced 2,000 toys and sold 1,850 toys. The following are needed to make 1 toy:
Wood 2 board feet at $3 per foot
Paint 1.5 quarts at $2 per quart
Direct labor 3 hours at $6 per hour
Manufacturing overhead is applied at a rate of $4 per direct labor hour.
Refer to Exhibit 18-4. Given the information above, the cost of direct materials used in January would be:
A) $12,000
B) $18,000
C) $16,600
D) $11,100
2. Cachet Inc. had a $93,000 balance in Accounts Receivable on July 1. In July, it expects to collect 55% of these receivables and 30% of the July credit sales, which are budgeted at $138,000. What is the budgeted accounts receivable at the end of July?
A) $138,450
B) $41,400
C) $92,550
D) $51,150
3. The following resources are required to make 1 batch of ice cream:
Milk5 gallons at $2.50 per gallon
Sugar 5 pounds at $0.30 per pound
Direct labor 45 minutes at $12.00 per hour
Manufacturing overhead 30 minutes at $6.00 per hour
Given this information, what is the cost of making 1 batch of ice cream?
A) $23.00
B) $21.50
C) $14.00
D) $26.00
4. Theodore's Musical Toys makes xylophones. Each xylophone takes 3 labor hours to make at a rate of $10.00 per hour. What is the budgeted production of xylophones if the budgeted direct labor cost for July is $16,200?
A) 1,620
B) 1,200
C) 540
D) 5,400
5. A department has a budgeted monthly manufacturing overhead cost of $160,000 plus $16 per direct labor hour. If a flexible budget reflects $388,000 for total manufacturing overhead cost for the month, the actual direct labor hours would be:
A) 24,250
B) 13,000
C) 12,250
D) 14,250
6. Exhibit 18-6
The July manufacturing overhead budget of Kyoto Corporation, shown below, was constructed assuming an activity level of 48,000 direct labor hours
Variable costs:
Indirect labor $48,000
Indirect materials 24,000
Factory supplies 19,200 $ 91,200
Fixed costs:
Depreciation $38,400
Supervision 69,600
Property taxes 36,000 144,000
Total overhead costs $235,200
Refer to Exhibit 18-6. If management prepared a flexible budget for July using 54,000 direct labor hours, what amount would this flexible budget show for indirect labor?
A) $27,000
B) $102,600
C) $54,000
D) $48,000
7. Refer to Exhibit 18-6. If management prepared a flexible budget for July using 40,000 direct labor hours, what amount would this flexible budget show for total variable costs?
A) $76,000
B) $83,600
C) $91,200
D) $87,200
8. Refer to Exhibit 18-6. If management prepared a flexible budget for July using 52,000 direct labor hours, what amount would this flexible budget show for total overhead costs?
A) $239,200
B) $254,800
C) $242,800
D) $235,200
9. Exhibit 18-7
Cedar Corporation uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows:
Indirect labor $12.00
Indirect materials 6.00
Maintenance 2.00
Utilities 1.00
Fixed overhead costs per month are:
Supervision $8,000
Insurance 1,600
Factory rent 1,300
Depreciation 1,900
Refer to Exhibit 18-7. If Cedar prepares a flexible budget for 4,000 direct labor hours, what amount will this budget show for variable manufacturing overhead costs?
A) $109,600
B) $42,000
C) $8,400
D) $84,000
10. Refer to Exhibit 18-7. If Cedar prepares a flexible budget for 6,000 direct labor hours, what amount will this budget show for total manufacturing overhead costs?
A) $126,000
B) $134,000
C) $138,800
D) $12,800