Exam 8: Budgeting for Planning and Control

Rydingsward, Inc., has done a cost analysis for its production of reflectors.The following activities and cost drivers have been developed: -What is the budgeted inspection cost if there was production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000 purchase orders?

Jordan Manufacturing Company expects to incur the following per unit costs for 1,000 units of production: -What is the total amount of overhead included in the overhead budget?

Ben Company has the following sales forecast for the next quarter: April, 20,000 units; May, 24,000 units; June, 28,000 units.Sales totaled 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. -The planned ending inventory of finished goods for May is

Villafane, Inc., has done a cost analysis for its production of decals.The following activities and cost drivers have been developed: Following are the actual costs of producing 35,000 decals: 1,000 machine hours; 5 batches; 30 purchase orders The following variances were given in the activity performance report: - What is the activity variance for design?

Sasha Company has a sales budget for next month of $150,000.Cost of goods sold is expected to be 40 percent of sales.All goods are purchased in the month used and paid for in the month following purchase.The beginning inventory of merchandise is $5,000, and an ending inventory of $6,000 is desired.Beginning accounts payable is $38,000. For Sasha Company, the ending accounts payable should be

Olson Company has a sales budget for next month of $50,000.Cost of goods sold is expected to be 60 percent of sales.All goods are purchased in the month used and paid for in the month following their purchase.The beginning inventory of merchandise is $1,500 and an ending inventory of $2,000 is desired.Beginning accounts payable is $13,000. -The cost of goods sold for next month is expected to be

Figure 8-1 Canceco Company produces and sells pillows.It expects to sell 10,000 pillows in the year 2012 and had 1,000 pillows in finished goods inventory at the end of 2011.Canceco would like to complete operations in the year 2012 with at least 1,250 completed pillows in inventory.There is no ending work-in-process inventory.The pillows sell for $5 each. - Refer to Figure 8-1.What would be the total sales for the year 2012?

Smithson Corporation has the following budgeted sales for the selected six-month period: There were 7,500 units of finished goods in inventory at the beginning of June.Plans are to have an inventory of finished product equal to 20 percent of the unit sales for the next month. Three pounds of materials are required for each unit produced.Each pound of material costs $20.Inventory levels for materials equal 30 percent of the needs for the next month.Materials inventory on June 1 was 5,000 pounds. Required:

Sandy Corporation has a sales budget for next month of $50,000.Cost of goods sold is expected to be 60 percent of sales.All goods are purchased in the month used and paid for in the month following their purchase.The beginning inventory of merchandise is $1,500 and an ending inventory of $2,000 is desired.Beginning accounts payable is $13,000. The ending accounts payable for Sandy Corporation should be

Mertz, Inc., has done a cost analysis for its production of flags.The following activities and cost drivers have been developed: Following are the actual costs of producing 75,000 flags: 1,000 machine hours; 15 batches; 10 purchase orders Required: Prepare an activity-based performance report.

Figure 8-8 Armati, Inc., is looking for feedback on company performance.The company compares the budget for the year with the actual costs.Data have been collected below: Armati, Inc., had the following budgeted data: The following actually occurred: -Refer to Figure 8-8.The budgeted cost for direct labor for 2011 was

Figure 8-5 The following forecasted sales pertain to Cordon Corporation: Collection pattern: 65 percent in month of sale 35 percent in month following sale Cordon Corporation has a selling price of $2.50 per unit and expects to maintain ending inventories equal to 25 percent of the next month's sales. - Refer to Figure 8-5.How many dollars are expected to be collected in September?

When budgets are used for control,

Figure 8-8 Armati, Inc., is looking for feedback on company performance.The company compares the budget for the year with the actual costs.Data have been collected below: Armati, Inc., had the following budgeted data: The following actually occurred: - Refer to Figure 8-8.The flexible budget variance for supervision for 2011 is

Which is NOT one of the four steps needed to build an activity-based budget?

General Corporation manufactures boxes.The estimated number of boxes sold for the first three months of 2011 are as follows: Finished goods inventory at the end of December was 900 units.Ending finished goods inventory is equal to 20 percent of the next month's sales.General Corporation expects to sell the boxes for $5 each.April 2011 sales is projected at 4,500 boxes. - How many boxes should be produced in February?

Harald, Inc., has done a cost analysis for its production of bumper stickers.The following activities and cost drivers have been developed: Following are the actual costs of producing 85,000 stickers: 5,000 machine hours; 10 batches; 20 purchase orders - What is the budgeted cost per sticker? (Round to three decimal places.)

Gerald Company manufactures books.Manufacturing a book takes 10 units of A1 and 1 unit of A2.Scheduled production of books for the next two months is 1,000 and 1,200 units, respectively.Beginning inventory is 4,000 units of A1 and 30 units of A2.The ending inventory of A1 is planned to decrease 500 units in each of the next two months, and the A2 inventory is expected to increase 5 units in each of the next two months. -How many units of A2 are expected in the raw material inventory at the end of the second month?

_______________ are comprehensive financial plans made up of various individual departmental and activity budgets.

The following forecasted sales pertain to Reject City: Reject City has a selling price of $5 per unit and expects to maintain ending inventories equal to 25 percent of next month's sales. How many units are expected to be produced in June?