Exam 13: Budgeting and Standard Cost Systems

Cape Corporation sells a single product.Budgeted sales for the year are anticipated to be 640,000 units,estimated beginning inventory is 98,000 units,and desired ending inventory is 80,000 units.The quantities of direct materials expected to be used for each unit of finished product are given below. -The amount of direct material B purchased during the year is

The following data is given for the Walker Company: Overhead is applied on standard labor hours. The factory overhead volume variance is

For February,sales revenue is $250,000;sales commissions are 6% of sales;the sales manager's salary is $50,000;advertising expenses are $15,000;shipping expenses total 1% of sales;and miscellaneous selling expenses are $1,000 plus 1/2 of 1% of sales.Total selling expenses for the month of February are

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

If the standard to produce a given amount of product is 12,000 hours at a factory overhead rate of $5 ($3 fixed,$2 variable),actual variable factory overhead was $26,400,actual fixed factory overhead was $45,000,and 100% of productive capacity is 15,000 hours,the volume variance was $9,000 favorable.

Frogue Corporation uses a standard cost system.The following information was provided for the period that just ended: -The direct materials cost variance is

The standard factory overhead rate is $12 per machine hour ($10 for variable factory overhead and $2 for fixed factory overhead)based on 100% capacity of 42,000 machine hours.The standard cost and the actual cost of factory overhead for the production of 2,000 units were as follows: Determine the (a)volume variance, (b)controllable variance,and (c)total factory overhead cost variance.

Which of the following conditions normally would NOT indicate that standard costs should be revised?

A variant of fiscal-year budgeting whereby a twelve-month projection into the future is maintained at all times is termed

The most effective means of presenting standard factory overhead cost variance data is through a factory overhead cost variance report.

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

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

Periodic comparisons between planned objectives and actual performance are reported in

In preparing flexible budgets,the first step is to identify the fixed and variable components of the various costs and expenses being budgeted.

Employees view budgeting more positively when goals are established for them by senior management.

Once a static budget has been determined,it is changed regularly as the underlying activity changes.

The cash collections from accounts receivable in October are

The formula to compute direct labor time variance is to calculate the difference between

The standard cost is how much a product should cost to manufacture.

A budget performance report compares actual results with the budgeted amounts and reports differences for possible investigation.