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18) The following are budgeted data: 18) Sales in units Production in units January 15,000 18,000 February 20,000 19,000 March 18,000 16,000 One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. Purchases of raw materials for February would be budgeted to be: A) 20,400 pounds B) 19,600 pounds C) 18,600 pounds D) 18,400 pounds 19) 19) Tracle Corporation manufactures and selle women's skirts. Each skirt (unit) requires 2.2 yards of cloth. Selected data from Tracie's master budget for next quarter are shown below: Budgeted sales in units) Budgeted production (in units) July 7,000 8,000 August 9,000 10,500 September 11,000 13,000 Each unit requires 0.8 hours of direct labor, and the average hourly cost of Tracie's direct labor is $18. What is the cost of Tracie Corporation's direct labor in September? A) $187,200 B) $234,000 C ) $158,400 D) $198,000 20) 20) Which of the following statements is NOT correct concerning the Manufacturing Overhead Budget? A) The Manufacturing Overhead Budget shows only the variable portion of manufacturing overhead. B) The Manufacturing Overhead Budget shows the expected cash disbursements for manufacturing overhead. C) The Manufacturing Overhead Budget is prepared after the Sales Budget. D) The Manufacturing Overhead Budget provides a schedule of all costs of production other than direct materials and labor costs. 21) 21) Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 5,600 direct labor-hours will be required in August. The variable overhead rate is $5.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $69,440 per month, which includes depreciation of $15,680. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: A) $53,760 B) 899,680 C) $30,240 D) $84,000

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