Question : 91. Prior to the start of 2008, Proctor Inc. estimated budgeted : 1295649

 

 

91. Prior to the start of 2008, Proctor Inc. estimated budgeted sales at 225,000 units. At the start of 2008, there were 8,000 units in beginning finished goods. During 2008, 215,000 units were produced and 220,000 units were sold. How many units should Proctor’s 2008 flexible sales budget be based upon? A. 225,000B. 220,000C. 215,000D. 212,000

 

92. Vestal Products Inc. had the following information available for 2008: 

Budgeted sales for 2008

90,000 units

 

 

Units in beginning inventory (1/1/08)

4,000 units

Units produced during 2008

100,000 units

Units in ending inventory (12/31/08)

6,000 units

 

 

How many units should Vestal’s 2008 flexible sales budget be based upon? A. 100,000B. 102,000C. 98,000D. 90,000

 

93. Baker Inc., a local manufacturer of cooking tools, had the following information available for 2008: 

Budgeted sales for 2008

250,000 units

 

 

Units in beginning inventory (1/1/08)

5,000 units

Units produced during 2008

265,000 units

Units in ending inventory (12/31/08)

2,000 units

 

 

How many units should Baker’s 2008 flexible sales budget be based upon? A. 268,000B. 265,000C. 250,000D. 262,000

 

94. McCourt Inc. manufacturers a unique product. The company’s controller has prepared the following static budget for the month of February: 

 

Estimated production

300 units

 

Direct labor per unit

1 hour

 

Direct labor required for estimated production

300 hours

 

Average direct labor rate per hour

$10

 

Estimated direct labor cost

$3,000

 

 

 

Actual production during February was 275 units and actual direct labor cost was $2,900.If McCourt prepares a flexible budget for February, direct labor cost is estimated to be: A. $2,750B. $2,900C. $3,000D. $3,165

 

95. Camden Products Inc. manufacturers travel accessories. The company’s controller has prepared the following static budget of one of the product lines for the month of November: 

 

Estimated production

1,000 units

 

Direct labor per unit

12 minutes

 

Direct labor required for estimated production

200 hours

 

Average direct labor rate per hour

$9

 

Estimated direct labor cost

$1,800

 

 

 

Actual production during November was 1,300 units and actual direct labor cost was $2,520.If Camden prepares a flexible budget for November, direct labor cost is estimated to be: A. $1,800B. $2,520C. $2,340D. $1,938

 

96. Colorado Springs Ltd. produces and sells bottled water. The company’s controller has the following information available from the static budget of one of the product lines for the month of April: 

 

Estimated production

20,000 units

 

Direct material per unit

2 ounces

 

Direct material cost per unit

$.15 per ounce

 

 

 

Actual production during April was 18,000 units and actual direct materials cost was $6,300.If the company prepares a flexible budget for April, direct materials cost is estimated to be: A. $7,000B. $6,300C. $5,400D. $6,000

 

97. Global Products produces and sells limited edition decorative plates. The company’s controller has the following information available from the static budget of one of the product lines for the month of April: 

 

Estimated production

2,000 units

 

Direct material per unit

10 ounces

 

Direct material cost per unit

$.25 per ounce

 

 

 

Actual production during April was 1,900 units and actual direct materials cost was $4,940.If the company prepares a flexible budget for April, direct materials cost is estimated to be: A. $5,200B. $4,940C. $5,000D. $4,750