Exam 7: Profit Planning

The Tobler Company has budgeted production for next year as follows: Four kilograms of raw materials are required for each unit produced.Raw materials on hand at the start of the year total 4,000 kilograms.The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs.Budgeted purchases of raw materials in kilograms in the third quarter will be?

The expected cash disbursements during April for operating expenses would be:

In preparing a master budget for a commercial entity,the last schedule prepared is usually the cash budget which summarizes all the previously prepared schedules and provides all information required for control purposes.

Which of the following is not a suggested benefit of using the "Beyond Budgeting" model?

As the sales forecast is the usual starting point for budgeting,not-for-profit entities do not prepare budgets as they have no sales.

Avril Company makes collections on sales according to the following schedule: 30% collected in the month of sale 60% collected in the month following sale 8% collected in the second month following sale 2% uncollectible The following sales are expected: Cash collections in March should be budgeted to be:

Prepare the cash budget for October,taking into consideration any financing or investing.

Friden Company has budgeted sales and production over the next quarter as follows: The company has 20,000 units of product on hand at April 1.20% of the next month's sales needs in units must be on hand at the end of each month.July sales are expected to be 140,000 units.Budgeted sales for June will be (in units):

In companies that have "no lay-off" policies,the total direct labour cost for a budget period is computed by multiplying the total direct labour hours needed to make the budgeted output of completed units by the direct labour wage rate.

The budgeted cash disbursements for December are:

The Doley Company has planned the following sales for the next three months:

Walsh Company expects sales of Product W to be 60,000 units in April,75,000 units in May and 70,000 units in June.The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales.Due to excessive production during March,on March 31 there were 25,000 units of Product W in the ending inventory.Given this information,Walsh Company's production of Product W for the month of April should be how many units:

The PDQ Company makes collections on credit sales according to the following schedule: 25% in month of sale 70% in month following sale 4% in second month following sale 1% uncollectible The following sales have been budgeted: The budget for cash collections in June will be:

What is the predetermined overhead rate per DLH for the year (rounded to nearest cent)?

Fairmont Inc.uses an accounting system that charges costs to the manager who has been delegated the authority to make decisions concerning the costs.For example,if the sales manager accepts a rush order that will result in higher than normal manufacturing costs,these additional costs are charged to the sales manager because the authority to accept or decline the rush order was given to the sales manager.This type of accounting system is known as:

The total number of units to be produced in July is:

Budgeted sales in Allen Company over the next four months are given below: Twenty-five percent of the company's sales are for cash and 75% are on credit.Collections for sales on credit follow a stable pattern as follows: 50% of a month's sales are collected in the month of sale,30% are collected in the month following sale,and 15% are collected in the second month following sale.The remainder are uncollectible.Given these data,cash collections in December should be?

Sales forecasts are drawn up after the cash budget has been completed since only then are the funds available for marketing known.

If the budgeted production for July is 6,000 units,then the total budgeted factory overhead for July is:

The cash budget must be prepared before you can complete the: