Question 1

If the budgeted production for August is 5,000 units,what is the total budgeted factory overhead per unit?

Accepted Answer

A)  $15. 
B)  $18. 
C)  $20. 
D)  $22. 
A)  $15. 
B)  $18. 
C)  $20. 
D)  $22.

Question 2

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

Accepted Answer

A)  50,400 kilograms. 
B)  56,800 kilograms. 
C)  62,400 kilograms. 
D)  63,200 kilograms. 
A)  50,400 kilograms. 
B)  56,800 kilograms. 
C)  62,400 kilograms. 
D)  63,200 kilograms.

Question 3

Fougere Realtors,Inc. ,specializes in home re-sales.It earns revenue from selling fees.Fougere Realtors' major costs are commissions for salespersons,listing agents,and listing companies.Its business has improved steadily over the last ten years.As usual,Chris Fougere,the managing partner of Fougere Realtors,Inc. ,received a report summarizing the performance for the most recent year.   
Required:
a)Explain the major weakness of the performance report.
b)Explain clearly why all the variances for the variable expenses are unfavourable (U).
c)As a first step in helping Chris Fougere to evaluate cost/expense control in the organization,complete the following for the year ended December 31,2007,assuming the only cost driver is the number of home re-sales.(Note: Indicate any variance as either favourable (F)or unfavourable (U). )

Accepted Answer

@#IMG-DLM& 
a)The major weakness of the performanc

Question 4

The cash budget must be prepared before you can complete which of the following?

Accepted Answer

A)  Production budget. 
B)  Budgeted balance sheet. 
C)  Raw materials purchases budget. 
D)  Schedule of cash disbursements. 
A)  Production budget. 
B)  Budgeted balance sheet. 
C)  Raw materials purchases budget. 
D)  Schedule of cash disbursements.

Question 5

At an activity level of 180,000 direct labour hours,what amount would the flexible budget estimate for total budgeted fixed costs?

Accepted Answer

A)  $100,000. 
B)  $144,000. 
C)  $150,000. 
D)  $160,000. 
A)  $100,000. 
B)  $144,000. 
C)  $150,000. 
D)  $160,000.

Question 6

The Doley Company has planned the following sales for the next three months:   
Sales are made 20% for cash and 80% on account.From experience,the company has learned that a month's sales on account are collected according to the following pattern:   
The company requires a minimum cash balance of $5,000 to start a month.The beginning cash balance in March is budgeted to be $6,000.
Required:
a)Compute the budgeted cash receipts for March.
b)The following additional information has been provided for March:

Accepted Answer

@#IMG-DLM& 
Prepare a cash budget in good form for

Question 7

What is the budgeted accounts receivable balance on September 30?

Accepted Answer

A)  $126,000. 
B)  $148,000. 
C)  $166,000. 
D)  $190,000. 
A)  $126,000. 
B)  $148,000. 
C)  $166,000. 
D)  $190,000.

Question 8

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:  
What would be the cash collections in June?

Accepted Answer

A)  $110,000. 
B)  $111,500. 
C)  $113,400. 
D)  $115,500. 
A)  $110,000. 
B)  $111,500. 
C)  $113,400. 
D)  $115,500.

Question 9

A flexible budget is "flexible" in the sense that a budget can be prepared for any level of activity,but once a budget is set the budget figures are not changed if actual activity later proves to be different than budgeted activity.

Accepted Answer

A) True 
 B)False

Question 10

What is the expected total variable overhead cost at an activity level of 5,000 guest-days per month?

Accepted Answer

A)  $127,000 
B)  $109,220 
C)  $95,000 
D)  $81,700 
A)  $127,000 
B)  $109,220 
C)  $95,000 
D)  $81,700

Question 11

The following costs appear in Malgorzata Company's flexible budget at an activity level of 15,000 machine-hours:  
What would be the flexible budget amounts at an activity level of 12,000 machine hours if indirect material is a variable cost and factory rent a fixed cost?

Accepted Answer

A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D 
A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D

Question 12

ABC Company has a cash balance of $9,000 on April 1.The company must maintain a minimum cash balance of $6,000.During April,expected cash receipts are $45,000.Expected cash disbursements during the month total $52,000.What amount will the company need to borrow during April?

Accepted Answer

A)  $2,000. 
B)  $4,000. 
C)  $6,000. 
D)  $8,000. 
A)  $2,000. 
B)  $4,000. 
C)  $6,000. 
D)  $8,000.

Question 13

If the budgeted cash disbursements for selling and administrative expenses for November total $123,250,then how much was the total selling and administrative budget for November?

Accepted Answer

A)  $123,250. 
B)  $134,250. 
C)  $168,250. 
D)  $187,250. 
A)  $123,250. 
B)  $134,250. 
C)  $168,250. 
D)  $187,250.

Question 14

What is the company's master budget operating income (loss)for April?

Accepted Answer

A)  $388,000. 
B)  $463,000. 
C)  $550,000. 
D)  $625,000. 
A)  $388,000. 
B)  $463,000. 
C)  $550,000. 
D)  $625,000.

Question 15

In a budget of cash receipts for March,what would be the total cash receipts?

Accepted Answer

A)  $8,200. 
B)  $16,000. 
C)  $17,800. 
D)  $20,200. 
A)  $8,200. 
B)  $16,000. 
C)  $17,800. 
D)  $20,200.

Question 16

The Stacy Company makes and sells a single product: Product R.Budgeted sales for April are $300,000.Gross margin is budgeted at 30% of sales dollars.If the net income for April is budgeted at $40,000,what are the budgeted selling and administrative expenses?

Accepted Answer

A)  $50,000. 
B)  $78,000. 
C)  $102,000. 
D)  $133,333. 
A)  $50,000. 
B)  $78,000. 
C)  $102,000. 
D)  $133,333.

Question 17

What is the total number of units to be produced in July?

Accepted Answer

A)  6,920 units. 
B)  7,100 units. 
C)  7,280 units. 
D)  7,630 units. 
A)  6,920 units. 
B)  7,100 units. 
C)  7,280 units. 
D)  7,630 units.

Question 18

The participative budget can be a very effective control device in an organization.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  $105,000. 
B)  $110,000. 
C)  $110,800. 
D)  $113,000. 
A)  $105,000. 
B)  $110,000. 
C)  $110,800. 
D)  $113,000.

Question 20

At an activity level of 160,000 direct labour hours,what amount would the flexible budget estimate for the utilities?

Accepted Answer

A)  $80,000. 
B)  $100,000. 
C)  $120,000. 
D)  $160,000. 
A)  $80,000. 
B)  $100,000. 
C)  $120,000. 
D)  $160,000.

If the budgeted production for August is 5,000 units,what is the total budgeted factory overhead per unit?

The cash budget must be prepared before you can complete which of the following?

At an activity level of 180,000 direct labour hours,what amount would the flexible budget estimate for total budgeted fixed costs?

What is the budgeted accounts receivable balance on September 30?

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: What would be the cash collections in June?

A flexible budget is "flexible" in the sense that a budget can be prepared for any level of activity,but once a budget is set the budget figures are not changed if actual activity later proves to be different than budgeted activity.

What is the expected total variable overhead cost at an activity level of 5,000 guest-days per month?

The following costs appear in Malgorzata Company's flexible budget at an activity level of 15,000 machine-hours: What would be the flexible budget amounts at an activity level of 12,000 machine hours if indirect material is a variable cost and factory rent a fixed cost?

ABC Company has a cash balance of $9,000 on April 1.The company must maintain a minimum cash balance of $6,000.During April,expected cash receipts are $45,000.Expected cash disbursements during the month total $52,000.What amount will the company need to borrow during April?

If the budgeted cash disbursements for selling and administrative expenses for November total $123,250,then how much was the total selling and administrative budget for November?

What is the company's master budget operating income (loss)for April?

In a budget of cash receipts for March,what would be the total cash receipts?

The Stacy Company makes and sells a single product: Product R.Budgeted sales for April are $300,000.Gross margin is budgeted at 30% of sales dollars.If the net income for April is budgeted at $40,000,what are the budgeted selling and administrative expenses?

What is the total number of units to be produced in July?

The participative budget can be a very effective control device in an organization.

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

At an activity level of 160,000 direct labour hours,what amount would the flexible budget estimate for the utilities?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis Online

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Exam 9: Budgeting

If the budgeted production for August is 5,000 units,what is the total budgeted factory overhead per unit?

The cash budget must be prepared before you can complete which of the following?

At an activity level of 180,000 direct labour hours,what amount would the flexible budget estimate for total budgeted fixed costs?

What is the budgeted accounts receivable balance on September 30?

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: What would be the cash collections in June?

A flexible budget is "flexible" in the sense that a budget can be prepared for any level of activity,but once a budget is set the budget figures are not changed if actual activity later proves to be different than budgeted activity.

What is the expected total variable overhead cost at an activity level of 5,000 guest-days per month?

The following costs appear in Malgorzata Company's flexible budget at an activity level of 15,000 machine-hours: What would be the flexible budget amounts at an activity level of 12,000 machine hours if indirect material is a variable cost and factory rent a fixed cost?

ABC Company has a cash balance of $9,000 on April 1.The company must maintain a minimum cash balance of $6,000.During April,expected cash receipts are $45,000.Expected cash disbursements during the month total $52,000.What amount will the company need to borrow during April?

If the budgeted cash disbursements for selling and administrative expenses for November total $123,250,then how much was the total selling and administrative budget for November?

What is the company's master budget operating income (loss)for April?

In a budget of cash receipts for March,what would be the total cash receipts?

The Stacy Company makes and sells a single product: Product R.Budgeted sales for April are $300,000.Gross margin is budgeted at 30% of sales dollars.If the net income for April is budgeted at $40,000,what are the budgeted selling and administrative expenses?

What is the total number of units to be produced in July?

The participative budget can be a very effective control device in an organization.

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

At an activity level of 160,000 direct labour hours,what amount would the flexible budget estimate for the utilities?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis Online

Filters