Petrini Corporation Makes One Product and It Provided the Following

question 33

Multiple Choice

Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: a. The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,600, 12,000, and 11,700 units, respectively. All sales are on credit.
B. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month.
C. The ending finished goods inventory equals 30% of the following month's sales.
D. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $4.00 per pound.
E. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month.
F. The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.6 direct labor-hours.
G. Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour.
H. The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $70,000.
The estimated selling and administrative expense for February is closest to:

• A) $70,000
• B) $58,680
• C) $88,020
• D) $18,020

---

Definitions:

Discrimination Lawsuits

Legal actions taken by employees against employers or other parties, alleging unfair treatment or bias based on protected characteristics such as race, gender, age, or disability.

Employment Interviews

The practice of meeting with potential job candidates to assess their qualifications, skills, and suitability for a position.

Validity

The extent to which a tool, test, or method accurately measures what it is intended to measure.

Statistical Approach

A method of solving problems or making decisions based on data analysis and the principles of probability and statistics.