24. The selling and administrative expense budget of Breckinridge Corporation is

Question

24. The selling and administrative expense budget of Breckinridge Corporation is based on budgeted unit sales, which are 5.500 units for June. The variable selling and administrative expense is $1.00 per unit. The budgeted fixed selling and administrative expense is $101,200 per month, which includes depreciation of $6,050 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The selling and administrative expenses on the June budgeted Income Statement should be: A. $100,650 B. $106,700 C. $5,500 D. $95,150 E. $101,200 25. Veltri Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.77 direct labor-hours. The direct labor rate is $11.20 per direct labor-hour. The production budget calls for producing 7,100 units in October and 7.500 units in November. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months? A. $122,752.00 B. $127,708.00 C. $125,910.40 D. S127,562.40 E. $158.396.00 26. Walsh Company expects sales of Product W to be 60,000 units in April, 75,000 units in May and 70,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 25,000 units of Product W in the ending inventory. Given this information, Walsh Company's production of Product W for the month of April should be: A. 60,000 units B. 65,000 units C. 75,000 units D. 66,000 units

Explanation / Answer

SOLUTION

24. The selling and administrative expenses on the June budgeted income statement is- $100,650

Amount ($) Budgeted unit sales 5,500 Variable selling and administrative expense per unit 1.00 Variable selling and administrative expense $5,500 Fixed selling and administrative expense 101,200 Total selling and administrative expense 106,700 Less:Depreciation (6,050) Selling and administrative expenses 100,650

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