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Tracie Corporation manufactures and sells women\'s skirts. Each skirt (unit) req

ID: 2546955 • Letter: T

Question

Tracie Corporation manufactures and sells women's skirts. Each skirt (unit) requires 2.2 yards of cloth. Selected data from Tracie's master budget for next quarter are shown below: 5 July August September 7,400 9,400 11,400 Budgeted sales (in units) Budgeted production (in units 8,400 10,900 13,400 Each unit requires 0.9 hours of direct labor, and the average hourly cost of Tracie's direct labor is $19. What is the cost of Tracie Corporation's direct labor in September? Multiple Choice $216,600 $194,940 $229,140 $254,600

Explanation / Answer

5) Direct labour in september = 13400*.9*19 = 229140

so answer is c) $229140

6) Cash disbursement on manufacturing overhead :

Cash Variable manufacturing overhead = 4000*8 = 32000

Cash fixed manufacturing overhead = 43240-3520 = 39720

Total Cash disbursement on manufacturing overhead = (32000+39720) = 71720

so answer is c) $71720

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