Rokosz Corporation Makes One Product and It Provided the Following

question 8

Multiple Choice

Rokosz Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations:The budgeted selling price per unit is $104. Budgeted unit sales for October, November, December, and January are 6,900, 7,100, 11,300, and 15,300 units, respectively. All sales are on credit.Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month.The ending finished goods inventory equals 20% of the following month's sales.The ending raw materials inventory equals 30% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound.The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.5 direct labor-hours.The estimated direct labor cost for November is closest to:

• A) $320,000
• B) $182,620
• C) $456,550
• D) $19,850

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Definitions:

Breach Of Warranty

The failure to fulfill the terms of a promise or guarantee made about the quality, condition, or performance of a product or service.

Seller

An individual or entity that offers goods or services for sale to consumers or other businesses.

Express Warranty

A seller's explicit promise or guarantee about the condition or quality of a product.

Mechanic

A skilled worker specialized in constructing, repairing, or maintaining machinery, vehicles, or other technical systems.