Problem 1: Johnson corporation is preparing its direct labor budget for may projection for the month are that 30600 units are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $17, what is the total budgeted direct labor cost for May?
Problem 2: Miller com budgeted sales for April were estimate at $700,000, sales commissions 4 % of sales and the sales manager's salary at $80,000. Shipping expenses were estimated at 1% of sales and miscellaneous selling expenses were estimated at $1000 plus 0.5% of sales. Determine the budgeted selling expense on a flexible budget for April?
Problem 3: Johnson Corp is considering the replacement of a piece of equip with a new model following data old equipment: purchase price $255000 accumulated depreciation $102000 and annual operating costs $335000. New equip: purchase price $416000, Accumulated depreciation $0, and Annual operating cost $263000. If the old equip is replaced now it can be sold for $68800. Both the old equip remaining useful life and the new equip useful life is 5 yrs. which of the following is irrelevant to the replacement decision?
a) 347200
b) 68800
c) $416000
d) 153000
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