Operations And Supply Chain Management Assignment Help – . A company budgeted

Operations And Supply Chain Management Assignment Help – . A company budgeted

Question – 1. A company budgeted unit sales of 204,000 units for January, 2012 and 240,000 units for
February, 2012. The company has a policy of having an inventory of units on hand at the end of each
month equal to 30% of next month’s budgeted unit sales. If there were 61,200 units of inventory on
hand on December 31, 2011, how many units should be produced in January, 2012 in order for the
company to meet its goals?
a. 214,800 units
b. 204,000 units
c. 193,200 units
d. 276,000 units
2. At January 1, 2012, Bella Company has beginning inventory of 2,000 DVD players. Bella estimates
it will sell 10,000 units during the first quarter of 2012 with a 12% increase in sales each quarter. Bella
s policy is to maintain an ending inventory equal to …Read More25% of the next quarter s sales. Each DVD player
costs $100 and is sold for $150. How much is budgeted sales revenue for the third quarter of 2012?
a. $450,000
b. $1,950,000
c. $1,881,600
d. $12,544
3. Combs Co. is planning to sell 400 hair dryers and produce 380 hair dryers during March. Each hair
dryer requires 500 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 500 grams
and employees of the company are paid $15.00 per hour. Manufacturing overhead is applied at a rate
of 110% of direct labor costs. Combs Co. has 300 kilos of plastic in beginning inventory and wants to
have 200 kilos in ending inventory. How much is the total amount of budgeted direct labor for March?
a. $3,000
b. $6,000
c. $2,850
d. $5,700
4. The master budget of Carpenter Company shows that the planned activity level for next year is
expected to be 100,000 machine hours. At this level of activity, the following manufacturing overhead
costs are expected:
Indirect labor $480,000
Machine supplies 120,000
Indirect materials 140,000
Depreciation on factory building 100,000
Total manufacturing overhead $840,000
A flexible budget for a level of activity of 120,000 machine hours would show total manufacturing
overhead costs of
a. $988,000.
b. $840,000.
c. $1,008,000.
d. $908,000
1. …Read Less

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