Rydingsward, Inc., has done a cost analysis for its production of reflectors. The following activities and cost drivers have been developed: \[\begin{array} { l l } \text { Activit } & \text { Cost Formula } \\ \hline \text { Maintenance } & \$ 15,000 + \$ 4 \text { per machine hour } \\ \text { Machiring } & \$ 35,000 + \$ 1 \text { per machine hour } \\ \text { Inspection } & \$ 60,000 + \$ 750 \text { per batch } \\ \text { Setups } & \$ 1,000 \text { per batch } \\ \text { Purchasing } & \$ 50,000 + \$ 10 \text { per purchase order } \end{array}\] -Refer to the figure.What is the machining cost for production of 50,000 reflectors that will require 8,000 machine hours,25 batches,and 15,000 purchase orders?

A) $393,750 B) $933,410 C) $3,937,500 D) $38,410,000 A) $393,750 B) $933,410 C) $3,937,500 D) $38,410,000

Kara Corporation has the following sales forecasts for the selected three-month period: \[\begin{array} { l l } \text { Month } & \text { sales } \\ \hline \text { July } & \$24,000 \\ \text { August } & 14,000 \\ \text { September } & 16,000 \end{array}\] Seventy percent of sales are collected in the month of the sale,and the remainder are collected in the following month. \[\begin{array} { l r } \text { Accounts recervable balance (July 1) } &\$20,000\\ \text { Cash balance (July 1) } & 10,0000 \end{array}\] Minimum cash balance is $10,000.Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges). -Refer to the figure.What is the cash balance at the end of July,assuming that cash is received only from customers and that $40,000 is paid out during April?

A) $6,800 B) $10,800 C) $16,800 D) $20,000 A) $6,800 B) $10,800 C) $16,800 D) $20,000

Armati, Inc., is looking for feedback on companyperformance. The company compares the budget for the year with the actual costs. Data have been collected below: Armati, Inc., had the following budgeted data: $\begin{array}{lr} \text { Unit sales } & 26,000 \\ \text { Unit production } & 26,000 \\ & \\ \text { Budgeted fixed overhead: } & \$ 800 \\ \text { Supervision } & 2,000 \\ \text { Depreciation } & 100 \\ \text { Rent } & 1800 \end{array}$ $\begin{array}{llr} \text {Budgeted variable costs per unit: } &\\ \text { Direct materials} &\$0.15\\ \text { Direct labour } &0.20\\ \text { Supplies } &0.02\\ \text { Indirect labour } &0.05\\ \text{Power}&0.02 \end{array}$ $\begin{array}{llr} \text { Actual unit sales} &24,000\\ \text {Actual unit production } &28,000\\ \\ \text { Actual fixed overhead:} &\\ \text { Supervision } &\$850\\ \text { Depreciation } &2,000\\ \text { Rent} &100\\ \end{array}$ $\begin{array}{llr} \text { Actual variable costs: } &\\ \text {Direct materials } &\$3,500\\ \text { Direct labour} &4,900\\ \text {Supplies } &530\\ \text { Indirect labour} &1,250\\ \text {Power } &470\\ \end{array}$ -Refer to the figure.What were the total budgeted costs?

A) $11,440 B) $13,460 C) $13,510 D) $14,340 A) $11,440 B) $13,460 C) $13,510 D) $14,340

Rydingsward, Inc., has done a cost analysis for its production of reflectors. The following activities and cost drivers have been developed: \[\begin{array} { l l } \text { Activit } & \text { Cost Formula } \\ \hline \text { Maintenance } & \$ 15,000 + \$ 4 \text { per machine hour } \\ \text { Machiring } & \$ 35,000 + \$ 1 \text { per machine hour } \\ \text { Inspection } & \$ 60,000 + \$ 750 \text { per batch } \\ \text { Setups } & \$ 1,000 \text { per batch } \\ \text { Purchasing } & \$ 50,000 + \$ 10 \text { per purchase order } \end{array}\] -Refer to the figure.What are the budgeted setup costs if there was production of 50,000 reflectors that will require 8,000 machine hours,25 batches,and 15,000 purchase orders?

A) $1,000 B) $25,000 C) $8,000,000 D) $15,000,000 A) $1,000 B) $25,000 C) $8,000,000 D) $15,000,000

Armati, Inc., is looking for feedback on companyperformance. The company compares the budget for the year with the actual costs. Data have been collected below: Armati, Inc., had the following budgeted data: $\begin{array}{lr} \text { Unit sales } & 26,000 \\ \text { Unit production } & 26,000 \\ & \\ \text { Budgeted fixed overhead: } & \$ 800 \\ \text { Supervision } & 2,000 \\ \text { Depreciation } & 100 \\ \text { Rent } & 1800 \end{array}$ $\begin{array}{llr} \text {Budgeted variable costs per unit: } &\\ \text { Direct materials} &\$0.15\\ \text { Direct labour } &0.20\\ \text { Supplies } &0.02\\ \text { Indirect labour } &0.05\\ \text{Power}&0.02 \end{array}$ $\begin{array}{llr} \text { Actual unit sales} &24,000\\ \text {Actual unit production } &28,000\\ \\ \text { Actual fixed overhead:} &\\ \text { Supervision } &\$850\\ \text { Depreciation } &2,000\\ \text { Rent} &100\\ \end{array}$ $\begin{array}{llr} \text { Actual variable costs: } &\\ \text {Direct materials } &\$3,500\\ \text { Direct labour} &4,900\\ \text {Supplies } &530\\ \text { Indirect labour} &1,250\\ \text {Power } &470\\ \end{array}$ -Refer to the figure.What is the static budget for total variable costs?

A) $90 U B) $180 U C) $790 F D) $880 F A) $90 U B) $180 U C) $790 F D) $880 F

Exam 8: Budgeting for Planning and Control

Ben Company has the following sales forecast for the next quarter: April,20,000 units; May,24,000 units; June,28,000 units.Sales totalled 16,000 units in March.The March finished goods inventory was 4,000 units.End-of-month finished goods inventory levels are planned to be equal to 20 percent of the next month's planned sales. - What is the planned ending inventory of finished goods for May?

(Multiple Choice)

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Question 81

Rydingsward, Inc., has done a cost analysis for its production of reflectors. The following activities and cost drivers have been developed: Activit Cost Formula Maintenance \ 15,000+\ 4 per machine hour Machiring \ 35,000+\ 1 per machine hour Inspection \ 60,000+\ 750 per batch Setups \ 1,000 per batch Purchasing \ 50,000+\ 10 per purchase order -Refer to the figure.What is the machining cost for production of 50,000 reflectors that will require 8,000 machine hours,25 batches,and 15,000 purchase orders?

(Multiple Choice)

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Question 82

Amy Company produces and sells bikes.It expects to sell 15,000 bikes in March and had 1,200 bikes in finished goods inventory at the end of February.Amy Company would like to complete operations in March with at least 1,500 completed bikes in inventory.The bikes sell for $100 each. What would be the total sales for March?

(Multiple Choice)

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Question 83

What is the process of setting standards,receiving feedback on actual performance,and taking corrective action whenever actual performance deviates significantly from planned performance?

(Multiple Choice)

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Question 84

Which of the following is an example of a negative incentive?

(Multiple Choice)

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Question 85

Amy Company produces and sells bikes.It expects to sell 15,000 bikes in March and had 1,200 bikes in finished goods inventory at the end of February.Amy Company would like to complete operations in March with at least 1,500 completed bikes in inventory.The bikes sell for $100 each. How many bikes would be produced in March?

(Multiple Choice)

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Question 86

Which of the following does a static budget provide?

(Multiple Choice)

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Question 87

Kara Corporation has the following sales forecasts for the selected three-month period: Month sales July \2 4,000 August 14,000 September 16,000 Seventy percent of sales are collected in the month of the sale,and the remainder are collected in the following month. Accounts recervable balance (July 1) \2 0,000 Cash balance (July 1) 10,0000 Minimum cash balance is $10,000.Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges). -Refer to the figure.What is the cash balance at the end of July,assuming that cash is received only from customers and that $40,000 is paid out during April?

(Multiple Choice)

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Question 88

Mertz,Inc.,has done a cost analysis for its production of flags.The following activities and cost drivers have been developed: Activity Cost Farmula Maintenance \ 13,000+\ 2 per machine hour Machining \ 45,000+\ 6 per machine hour Inspection \ 70,000+\ 500 per batch Setups \ 2,000 per batch Purchasing \ 80,000+\ 150 per purchase order Following are the actual costs of producing 75,000 flags: 1,000 machine hours; 15 batches; 10 purchase orders Maintenance \ 14,000 Machining 50,000 Inspection 70,000 Setups 32,000 Purchasing 82,000 Prepare an activity-based performance report.

(Essay)

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Question 89

Villafane, Inc., has done a cost analysis for its production of decals. The following activities and cost drivers have been developed: Design \ 5,000+\ 0.05 per machine hour Machining \ 25,000+\ 0.01 per machine hour Setups \ 35 per batch Purchasing \ 50+\ 15 per purchase order Following are the actual costs of producing 35,000 decals: 1,000 machine hours; 5 batches; 30 purchase orders Design \ 5,080 Machining ? Setups ? Purchasing \ 600 The following variances were given in the activity performance report: Design ? Machining \ 40 Setups \ 15 Purchasing ? -Refer to the figure.What is the actual cost of machining?

(Multiple Choice)

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Question 90

Armati, Inc., is looking for feedback on companyperformance. The company compares the budget for the year with the actual costs. Data have been collected below: Armati, Inc., had the following budgeted data: Unit sales 26,000 Unit production 26,000 Budgeted fixed overhead: \ 800 Supervision 2,000 Depreciation 100 Rent 1800 Budgeted variable costs per unit: Direct materials \0 .15 Direct labour 0.20 Supplies 0.02 Indirect labour 0.05 Power 0.02 Actual unit sales 24,000 Actual unit production 28,000 Actual fixed overhead: Supervision \8 50 Depreciation 2,000 Rent 100 Actual variable costs: Direct materials \3 ,500 Direct labour 4,900 Supplies 530 Indirect labour 1,250 Power 470 -Refer to the figure.What were the total budgeted costs?

(Multiple Choice)

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Question 91

Rydingsward, Inc., has done a cost analysis for its production of reflectors. The following activities and cost drivers have been developed: Activit Cost Formula Maintenance \ 15,000+\ 4 per machine hour Machiring \ 35,000+\ 1 per machine hour Inspection \ 60,000+\ 750 per batch Setups \ 1,000 per batch Purchasing \ 50,000+\ 10 per purchase order -Refer to the figure.What are the budgeted setup costs if there was production of 50,000 reflectors that will require 8,000 machine hours,25 batches,and 15,000 purchase orders?

(Multiple Choice)

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Question 92

Rydingsward,Inc.,has done a cost analysis for its production of reflectors. The following activities and cost drivers have been developed: Activity Cost Formula Maintenance \ 5,000+\ 8 per machine hour Machining \ 25,000+\ 4 per machine hour Inspection \ 90,000+\ 1,000 per batch Setups \ 5,000 per batch Purchasing \ 100,000+\ 100 per purchase order Prepare an activity-based budget for the following: 60,000 units: 10,000 machine hours; 30 batches; 20,000 purchase orders 100,000 units: 18,000 machine hours; 40 batches; 30,000 purchase orders

(Essay)

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Question 93

The following forecasted sales pertain to Norah Company: Month Sales April \ 200,000 May 250,000 June 150,000 July 100,000 $\text { Finished goods inventory as of March } 31 \quad \quad \quad \quad 4,000 \text { units }$ The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20 percent of the next month's sales. What is the budgeted beginning balance in units for finished goods inventory on June 1?

(Multiple Choice)

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Question 94

Dodge Corporation is in the process of preparing its budget for next year.Cost of goods sold has been estimated at 60 percent of sales.Merchandise purchases are to be made during the month preceding the month of the sales.Dodge pays 60 percent in the month of purchase,and 40 percent in the month following.Wages are estimated at 20 percent of sales and are paid during the month of sale.Other operating costs amounting to 10 percent of sales are to be paid in the month following the sale.The accounts payable balance on June 30 was $48,000. Month Sales June \ 170,000 July 200,000 August 120,000 September 150,000 October 160,000 November 100,000 Prepare a schedule of cash disbursements for July,August,and September.

(Essay)

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Question 95

Armati, Inc., is looking for feedback on companyperformance. The company compares the budget for the year with the actual costs. Data have been collected below: Armati, Inc., had the following budgeted data: Unit sales 26,000 Unit production 26,000 Budgeted fixed overhead: \ 800 Supervision 2,000 Depreciation 100 Rent 1800 Budgeted variable costs per unit: Direct materials \0 .15 Direct labour 0.20 Supplies 0.02 Indirect labour 0.05 Power 0.02 Actual unit sales 24,000 Actual unit production 28,000 Actual fixed overhead: Supervision \8 50 Depreciation 2,000 Rent 100 Actual variable costs: Direct materials \3 ,500 Direct labour 4,900 Supplies 530 Indirect labour 1,250 Power 470 -Refer to the figure.What is the static budget for total variable costs?

(Multiple Choice)

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Question 96

What are controllable costs?

(Multiple Choice)

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Question 97

Freedom Manufacturing Company needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 20 percent of total sales each month. Historically, sales on account have been collected as follows: 50 percent in the month of the sale, 35 percent in the month after the sale, and the remaining 15 percent two months after the sale. Sales for the quarter are projected as follows: January, $60,000; February, $30,000; and March, $90,000. Accounts receivable on December 31 were $45,000. -Refer to the figure.How many dollars are expected to be collected in September?

(Multiple Choice)

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Question 98

Which of the following is a financial budget?

(Multiple Choice)

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Question 99

What is the term for analysis that fosters management by exception?

(Multiple Choice)

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Question 100

What is the process of setting standards,receiving feedback on actual performance,and taking corrective action whenever actual performance deviates significantly from planned performance?

Which of the following is an example of a negative incentive?

Which of the following does a static budget provide?

What are controllable costs?

Which of the following is a financial budget?

What is the term for analysis that fosters management by exception?

A: Basic Cost Management Concepts

B: Basic Cost Management Concepts

Cost Behaviour

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Process Costing

Activity-Based Costing

Allocating Costs of Support Departments and Joint Products

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

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