1. Which one of the following budgets would be prepared for a manufacturer but not for a...
Question:
1. Which one of the following budgets would be prepared for a manufacturer but not for a merchandiser?
a. Direct labor budget
b. Cash budget
c. Sales budget
d. Budgeted income statement
2. Goteborg Mugs is planning to sell 2,000 mugs and produce 2,200 mugs during April. Each mug requires 2 pounds of resin and one-half hour of direct labor. Resin costs $1 per pound and employees of the company are paid $12.50 per hour. Manufacturing overhead is applied at a rate of 120% of direct labor costs. Goteborg has 2,000 pounds of resin in beginning inventory and wants to have 2,400 pounds in ending inventory. How much is the total amount of budgeted direct labor for April?
a. $12,500
b. $13,750
c. $25,000
d. $27,500
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain