Q1. Fiona Company Ltd has set the following standards to produce one unit of product. Normal production each month is 500 units.
|
Direct Material
|
8 Kg@ 6.5 per kg
|
$52
|
|
Direct Labor
|
4 hours @7.00 per hour
|
$28
|
During June, actual production amounted to 420 units. All direct material was purchased and used this month. Actual cost amounted to-
|
Direct Material
|
3500kg
|
$21875
|
|
Direct Labor
|
1720hours
|
$12212
|
Determine the standard material quantity allowed for June production. (Show The Workings)
Q3. BeActive Sporting Goods sells tandem bicycles. The following data was taken from the most recent quarterly sales forecast
|
|
Expected Sales Units
|
Target inventory at the end of the month
|
|
April
|
1400
|
315
|
|
May
|
1575
|
412
|
|
June
|
1650
|
425
|
BeActive's cost for one bicycle is $125. What dollar amount should the company budget for June purchases?