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Business, 18.11.2019 19:31 emmadownum
Bonkowski corporation makes one product and has provided the following information to prepare the master budget for the next four months of operations: budgeted selling price per unit $ 97 budgeted unit sales (all on credit): january 10,000 february 12,000 march 13,300 april 15,200 raw materials requirement per unit of output 4 pounds raw materials cost $ 1.00 per pound direct labor requirement per unit of output 2.5 direct labor-hours direct labor wage rate $ 23.00 per direct labor-hour predetermined overhead rate (all variable) $ 9.00 per direct labor-hour variable selling and administrative expense $ 3.10 per unit sold fixed selling and administrative expense $ 70,000 per month credit sales are collected: 30% in the month of the sale 70% in the following month raw materials purchases are paid: 30% in the month of purchase 70% in the following month the ending finished goods inventory should equal 30% of the following month's sales. the ending raw materials inventory should equal 10% of the following month’s raw materials production needs. the estimated selling and administrative expense for february is closest to: multiple choice $71,470 $37,200 $107,200 $70,000
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