1a.) The budgeted unit production of C-14 for April will be A. 408,000 units. B.

Question

1a.) The budgeted unit production of C-14 for April will be

A. 408,000 units.

B. 406,000 units.

C. 410,000 units.

D. 330,000 units.

1b.) Without prejudice to your response to any other question, assume for this question that Superite plans to manufacture 400,000 units in April. Superite’s April budget for the purchase of B-6 should be

A. 378,000 units.

B. 778,000 units.

C. 822,000 units.

D. 408,000 units.

Fact Pattern #11 Superite expects April sales of its deluxe model airplane, the C-14, to be 408,000 units at $11 each. Each C-14 requires three purchased components shown below. Number Needed Purchase Cost $ .50 .25 1.00 for Each C-14 Unit A-9 B-6 D-28 2 3 Factory direct labor and variable overhead per unit ofC-14 totals $3.00. Fixed factory overhead is $1.00 per unit at a production level of500,000 units. Superite plans the following beginning and ending inventories for the month ofApril and uses standard absorption costing for valuing inventory. PartNo. C-14 A-9 B-6 D-28 Units at April 1 12,000 21,000 32,000 14,000 Units at April 30 10,000 9,000 10,000 6,000

Explanation / Answer

1a The budgeted unit production of C-14 for April = 408000+10000-12000 = 406000 Option B is correct 1b Superite’s April budget for the purchase of B-6 = (400000*2)+10000-32000= 778000 Option B is correct

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