Exam 18: Budgeting and Control

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:

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?

The formula underlying the direct labor budget is:

Insufficient raw materials inventory may cause:

General Telephone makes telephones and fax machines. During the past several years, management has kept accurate records of costs and resource requirements, determining that the following is needed to make telephones and fax machines: Compute the total unit costs of the telephones and the fax machines.

Exhibit 18-2 Makeby Corporation makes sharbees. The following data are available on December 1, 2011: -Refer to Exhibit 18-2. Given the information above, the direct materials purchases cost during December will be:

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: - 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?

The Powder Peaks Resort is planning for the winter ski season (December, January, and February). Powder Peaks has 200 available rooms to rent and charges its customers $150 per room each night. The following information has also been gathered about Powder Peaks Resort: Prepare revenue budgets, supplies budgets, wages and salaries budgets, and overhead budgets for the months of December, January, and February (this year is not leap year).