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Grover Inc. produces picnic tables in a two-step process. Pretreated wood is cut in the Cutting Department and then the lumber is assembled into tables in the Assembly Department. It takes 30 minutes of direct labor time to cut the lumber and the standard hourly labor rate in the Cutting Department is $12. The tables take one hour to assemble and the standard hourly rate in the Assembly Department is $10. If Grover's production budget is 20,000, what is the company's direct labor budget? Select one: a. $680,000 b. $330,000 c. $320,000 d. $340,000 Question 2 Kerry Kola Company sells Kerry Kola in two sizes: 12 ounce and 32 ounce bottles, at a price of $1.00 and $2.25, respectively. Projected unit sale volumes by region follow: East Region: 12 ounce bottles 200,000 32 ounce bottles 150,000 West Region: 12 ounce bottles 325,000 32 ounce bottles 250,000 What is Kerry Kola’s budgeted sales? Select one: a. $1,643,750 b. $1,425,000 c. $1,362,500 d. $1,581,250 Question 3 Jobe Company's master budget called for 30,000 units of production. Budgeted direct material costs at this level were $450,000 or $15 per unit. Jobe actually produced 32,000 units and incurred direct material costs of $496,000. What is Jobe's direct material variance using flexible budgeting? Select one: a. $16,000 F b. $16,000 U c. $46,000 U d. $74,125 U

Grover Inc. produces picnic tables in a two-step process. Pretreated wood is cut in the Cutting Department and then the lumber is assembled into tables in the Assembly Department. It takes 30 minutes of direct labor time to cut the lumber and the standard hourly labor rate in the Cutting Department is $12. The tables take one hour to assemble and the standard hourly rate in the Assembly Department is $10. If Grover’s production budget is 20,000, what is the company’s direct labor budget?

Select one:
a. $680,000
b. $330,000
c. $320,000
d. $340,000

Question 2

Kerry Kola Company sells Kerry Kola in two sizes: 12 ounce and 32 ounce bottles, at a price of $1.00 and $2.25, respectively. Projected unit sale volumes by region follow:

East Region:

12 ounce bottles

200,000

32 ounce bottles

150,000

West Region:

12 ounce bottles

325,000

32 ounce bottles

250,000

What is Kerry Kola’s budgeted sales?
Select one:
a. $1,643,750
b. $1,425,000
c. $1,362,500
d. $1,581,250

Question 3

Jobe Company’s master budget called for 30,000 units of production. Budgeted direct material costs at this level were $450,000 or $15 per unit. Jobe actually produced 32,000 units and incurred direct material costs of $496,000. What is Jobe’s direct material variance using flexible budgeting?

Select one:
a. $16,000 F
b. $16,000 U
c. $46,000 U
d. $74,125 U

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