Exam 21: Budgeting

Budgets need to be fair and attainable for employees to consider the budget important in their normal daily activities.Which of the following is not considered a human behavior problem?

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

Supervisor salaries and indirect factory wages would normally appear in the direct labor cost budget.

The total direct materials purchases of materials A and B (assuming no beginning or ending material inventory)required for July production is

Budgeted sales for the month are

Motorcycle Manufacturers,Inc.projected sales of 78,000 machines for the year.The estimated January 1 inventory is 6,500 units,and the desired December 31 inventory is 6,000 units.What is the budgeted production (in units)for the year?

Fashion Jeans,Inc.sells two lines of jeans-Simple Life and Fancy Life.Simple Life sells for $85,and Fancy Life sells for $100.The company sells all of its jeans on credit and estimates that 60% is collected in the month of the sale,35% is collected in the following month,and the rest is considered to be uncollectible.The estimated sales for Simple are: January,20,000 pairs of jeans; February,27,500 pairs of jeans; and March,25,000 pairs of jeans.The estimated sales for Fancy are: January,18,000 pairs of jeans; February,19,000 pairs of jeans; and March,20,500 pairs of jeans.What are the expected cash receipts for the month of March?

Budgeted production for product XXX during the month is

Sleep Tight,Inc.manufactures bedding sets.The budgeted production is for 52,000 comforters this year.Each comforter requires 1.5 hours to cut and sew the material.The cost of cutting and sewing labor is $12.50 per hour.Determine the direct labor budget for this year.

Supervisor salaries,maintenance,and indirect factory wages would normally appear in the factory overhead cost budget.

Why is the sales budget usually prepared first?

If the expected sales volume for the current period is 8,000 units,the desired ending inventory is 1,400 units,and the beginning inventory is 1,200 units,the number of units set forth in the production budget,representing total production for the current period,is

The budget process involves doing all of the following except

Describe at least five benefits of budgeting.

The budget procedures used by a large manufacturer of automobiles would probably not differ from those used by a small manufacturer of paper products.

Based on the following production and sales estimates for May,determine the number of units expected to be manufactured in May. ​

The cash collections expected in September from accounts receivable are estimated to be

Purple Co.'s production budget for Product X for the year ended December 31 is as follows: ​ In Purple's production operations,Materials A,B,and C are required to make Product X.The quantities of direct materials expected to be used for each unit of product are as follows: ​ Prepare a direct materials purchases budget for Product X,assuming that there are no beginning or ending inventories for direct materials (all units purchased are used in production).

Budgeted production for product ZZZ during the month is

Goal conflict can be avoided if budget goals are carefully designed for consistency across all areas of the organization.