At the beginning of the period, the Cutting Department budgeted direct labor of $129,000, direct materials of $155,000 and fixed factory overhead of $14,000 for 7,800 hours of production. The department actually completed 11,100 hours of production. The appropriate total budget for the department, assuming it uses flexible budgeting, is: a. $418,154
b. $298,000
c. $424,077
d. $303,923

Frost corporation incurred the following transactions during its first year of operations. (assume all transactions involve cash.) 1) acquired $1,900 of capital from the owners. 2) purchased $435 of direct raw materials. 3) used $290 of these direct raw materials in the production process. 4) paid production workers $490 cash. 5) paid $290 for manufacturing overhead (applied and actual overhead are the same). 6) started and completed 250 units of inventory. 7) sold 140 units at a price of $6 each. 8) paid $130 for selling and administrative expenses. the amount of raw material inventory on the balance sheet at the end of the accounting period would be: