Question 1

The production budget is the starting point for preparation of the direct labor cost budget.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following budgets provides the starting point for the preparation of the direct labor cost budget?

Accepted Answer

A)  direct materials purchases budget 
B)  cash budget 
C)  production budget 
D)  sales budget 
A)  direct materials purchases budget 
B)  cash budget 
C)  production budget 
D)  sales budget C

Question 3

Miller and Sons' static budget for 10,000 units of production includes $50,000 for direct materials,$44,000 for direct labor,variable utilities of $5,000,and supervisor salaries of $24,000.A flexible budget for 12,000 units of production would show

Accepted Answer

A)  the same cost structure in total 
B)  direct materials of $60,000,direct labor of $52,800,utilities of $6,000,and supervisor salaries of $29,000 
C)  total variable costs of $148,000 
D)  direct materials of $60,000,direct labor of $52,800,utilities of $6,000,and supervisor salaries of $24,000 
A)  the same cost structure in total 
B)  direct materials of $60,000,direct labor of $52,800,utilities of $6,000,and supervisor salaries of $29,000 
C)  total variable costs of $148,000 
D)  direct materials of $60,000,direct labor of $52,800,utilities of $6,000,and supervisor salaries of $24,000 D

Question 4

The objectives of budgeting are (1)establishing specific goals for future operations,(2)executing plans to achieve the goals,and (3)periodically comparing actual results with these goals.

Accepted Answer

A) True 
 B)False

Question 5

For April,sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $98,000; advertising expenses are $90,000; shipping expenses total 2% of sales; and miscellaneous selling expenses are $2,100 plus 1 / 2 of 1% of sales.Total selling expenses for the month of April are

Accepted Answer

A)  $159,100 
B)  $242,600 
C)  $186,000 
D)  $182,100 
A)  $159,100 
B)  $242,600 
C)  $186,000 
D)  $182,100

Question 6

Gilbert's expects its September sales to be 20% higher than its August sales of $150,000.Manufacturing costs were $100,000 in August and are expected to be $120,000 in September.All sales are on credit and are collected as follows: 30% in the month of the sale and 70% in the following month.Payments of manufacturing costs are as follows: 25% in the month of production and 75% in the following month.The beginning cash balance on September 1 is $7,500.The ending balance on September 30 would be

Accepted Answer

A)  $61,500 
B)  $75,000 
C)  $72,300 
D)  $71,500 
A)  $61,500 
B)  $75,000 
C)  $72,300 
D)  $71,500

Question 7

Budgeted production for product XXX during the month is

Accepted Answer

A)  522,000 units 
B)  552,000 units 
C)  518,000 units 
D)  520,000 units 
A)  522,000 units 
B)  552,000 units 
C)  518,000 units 
D)  520,000 units

Question 8

The budgeted balance sheet assumes that all operating and financing plans are met.

Accepted Answer

A) True 
 B)False

Question 9

The master budget of a small manufacturer would normally include all component budgets that impact on the financial statements.

Accepted Answer

A) True 
 B)False

Question 10

Based on the following production and sales data of Frixion Co.for March of the current year,prepare (a)a sales budget and (b)a production budget.

Accepted Answer

The answer of Based on the following production and sales...

Question 11

The cash budget presents the expected inflow and outflow of cash for a specified period of time.

Accepted Answer

A) True 
 B)False

Question 12

At the beginning of the period,the Molding Department budgeted direct labor of $33,000 and supervisor salaries of $24,000 for 3,000 hours of production.The department actually completed 2,500 hours of production.Determine the budget for the department assuming that it uses flexible budgeting?

Accepted Answer

The answer of At the beginning of the period,the Molding...

Question 13

A budget procedure that provides for the maintenance at all times of a twelve-month projection into the future is called master budgeting.

Accepted Answer

A) True 
 B)False

Question 14

What is the budgeted units of production for March?

Accepted Answer

A)  256,000 
B)  206,000 
C)  214,000 
D)  298,000 
A)  256,000 
B)  206,000 
C)  214,000 
D)  298,000

Question 15

Flexible budgeting builds the effect of changes in level of activity into the budget system.

Accepted Answer

A) True 
 B)False

Question 16

The cash payments for Finch Company expected in the month of June are

Accepted Answer

A)  $215,500 
B)  $188,800 
C)  $214,000 
D)  $212,000 
A)  $215,500 
B)  $188,800 
C)  $214,000 
D)  $212,000

Question 17

The budgeted volume of production is normally computed as the sum of (1)the expected sales volume and (2)the desired ending inventory.

Accepted Answer

A) True 
 B)False

Question 18

The first budget to be prepared is usually the sales budget.

Accepted Answer

A) True 
 B)False

Question 19

Truliant Co.sells a product called Withitall and has predicted the following sales for the first four months of the current year: ​
  Ending inventory for each month should be 20% of next month's sales.How many units should be produced in February?

Accepted Answer

A)  1,940 
B)  1,800 
C)  1,900 
D)  1,850 
A)  1,940 
B)  1,800 
C)  1,900 
D)  1,850

Question 20

Total budgeted sales of both products for the year would be

Accepted Answer

A)  $42,000 
B)  $200,000 
C)  $264,000 
D)  $464,000 
A)  $42,000 
B)  $200,000 
C)  $264,000 
D)  $464,000

Exam 21: Budgeting

The production budget is the starting point for preparation of the direct labor cost budget.

Which of the following budgets provides the starting point for the preparation of the direct labor cost budget?

Miller and Sons' static budget for 10,000 units of production includes $50,000 for direct materials,$44,000 for direct labor,variable utilities of $5,000,and supervisor salaries of $24,000.A flexible budget for 12,000 units of production would show

The objectives of budgeting are (1)establishing specific goals for future operations,(2)executing plans to achieve the goals,and (3)periodically comparing actual results with these goals.

Budgeted production for product XXX during the month is

The budgeted balance sheet assumes that all operating and financing plans are met.

The master budget of a small manufacturer would normally include all component budgets that impact on the financial statements.

Based on the following production and sales data of Frixion Co.for March of the current year,prepare (a)a sales budget and (b)a production budget.

The cash budget presents the expected inflow and outflow of cash for a specified period of time.

At the beginning of the period,the Molding Department budgeted direct labor of $33,000 and supervisor salaries of $24,000 for 3,000 hours of production.The department actually completed 2,500 hours of production.Determine the budget for the department assuming that it uses flexible budgeting?

A budget procedure that provides for the maintenance at all times of a twelve-month projection into the future is called master budgeting.

What is the budgeted units of production for March?

Flexible budgeting builds the effect of changes in level of activity into the budget system.

The cash payments for Finch Company expected in the month of June are

The budgeted volume of production is normally computed as the sum of (1)the expected sales volume and (2)the desired ending inventory.

The first budget to be prepared is usually the sales budget.

Truliant Co.sells a product called Withitall and has predicted the following sales for the first four months of the current year: ​ Ending inventory for each month should be 20% of next month's sales.How many units should be produced in February?

Total budgeted sales of both products for the year would be

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

Truliant Co.sells a product called Withitall and has predicted the following sales for the first four months of the current year: Ending inventory for each month should be 20% of next month's sales.How many units should be produced in February?