1. Webster Corporation is preparing a master budget for the first quarter of the
ID: 2591140 • Letter: 1
Question
1. Webster Corporation is preparing a master budget for the first quarter of the year. The company budgets production of 3,060 units in January, 2,790 units in February and 3,690 units in March. Each unit requires 0.5 hours of direct labor. The direct labor rate is $12 per hour. Compute the budgeted direct labor cost for the first quarter budget. Q16 The Ballentine Company expects sales for June, July, and August of $57,000, $63,000, and $53,000, respectively. Experience suggests that 40% of sales are for cash and 60% are on credit. The company collects 50% of its credit sales in the month following sale, 45% in the second month following sale, and 5% are not collected. What are the company's expected cash receipts for August from its current and past sales?
Explanation / Answer
Compute the budgeted direct labor cost for the first quarter budget.
What are the company's expected cash receipts for August from its current and past sales?
January February March Quarter Production unit 3060 2790 3690 9540 Labour hour per unit 0.5 0.5 0.5 0.5 Labour hour for production 1530 1395 1845 4770 Rate per hour 12 12 12 12 Direct labour cost 18360 16740 22140 57240Related Questions
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