Michard Corporation Makes One Product and It Provided the Following

question 237

Multiple Choice

Michard 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 $125. Budgeted unit sales for April, May, June, and July are 7,600, 10,500, 13,800, and 12,900 units, respectively. All sales are on credit.Regarding credit sales, 20% are collected in the month of the sale and 80% 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 4 pounds of raw materials. The raw materials cost $2.00 per pound.Regarding raw materials purchases, 30% are paid for in the month of purchase and 70% in the following month.The direct labor wage rate is $25.00 per hour. Each unit of finished goods requires 3.0 direct labor-hours.The variable selling and administrative expense per unit sold is $3.40. The fixed selling and administrative expense per month is $80,000.The estimated direct labor cost for May is closest to:

• A) $558,000
• B) $33,480
• C) $837,000
• D) $279,000

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Definitions:

Feminist Legal Theory

An extension of feminism into the legal field, questioning gender biases in law and advocating for equal rights and justice.

Critical Race Theory

A theoretical framework in the social sciences that examines society and culture as they relate to categorizations of race, law, and power.

Critical Legal Studies

A legal theory that challenges and seeks to transform traditional legal ideas by focusing on social issues, power structures, and the relationship between law and society.

Merton's Social Adaptations

A theory proposed by sociologist Robert K. Merton that categorizes the different ways individuals adapt to societal expectations and pressures.