Unit 5• Question 1
5 out of 5 points
Parlee Company's sales are 30% in cash and 70% on credit. Sixty % of the credit sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder are uncollectible. The following are budgeted sales data:
January February March April
Total sales $60,000 $70,000 $50,000 $30,000
Total cash receipts in April would be budgeted to be:
a.
$38,900
b.
$47,900
c.
$27,230
d.
$36,230
• Question 2
5 out of 5 points
36. The Tobler Company has budgeted production for next year as follows:
Quarter
1st 2nd 3rd 4th
Production in units 10,000 12,000 16,000 14,000
Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the third quarter would be:
: a.
63,200 pounds
b.
62,400 pounds
c.
56,800 pounds
d.
50,400 pounds
• Question 3
5 out of 5 points
Pardee Company plans to sell 12,000 units during the month of August. If the company has 2,500 units on hand at the start of the month, and plans to have 2,000 units on hand at the end of the month, how many units must be produced during the month?
/
a.
11,500
b.
12,500
c.
12,000
d.
14,000
• Question 4
5 out of 5 points
LDG Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.0 hours of direct labor at the rate of $10.50 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.
The company plans to sell 22,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 100 and 400 units, respectively. Budgeted direct labor costs for June would be:
a.
$468,300
b.
$462,000
c.
$455,700
d.
$234,150
Unit 6
• Question
1
5 out of 5 points
Marchi Family Inn is a bed and breakfast
establishment in a converted 100-year-old mansion. The Inn's guests appreciate
its gourmet breakfasts and individually decorated rooms. The Inn's overhead
budget for the most recent month appears below:
Activity level 65 Guests
Variable overhead costs:
Supplies $ 156
Laundry $ 364
Fixed overhead costs:
Utilities $ 250
Salaries and wages $4,480
Depreciation
$1,330
Total overhead cost
$6,580
The Inn's variable overhead costs are driven by the number
of guests. What would be the total budgeted overhead cost for a month if the
activity level is 70 guests?
a.
$42,460.00
b.
$6,620.00
c.
$7,086.15
d.
$6,580.00
• Question
2
5 out of 5 points
Venanzi Air uses two measures of activity, flights and passengers, in
the cost formulas in its budgets and performance reports. The cost formula for
plane operating costs is $40,720 per month plus $2,646 per flight plus $11 per
passenger. The company expected its activity in September to be 62 flights and
288 passengers, but the actual activity was 64 flights and 289 passengers. The
actual cost for plane operating costs in September was $214,430. The activity
variance for plane operating costs in September would be closest to:
a.
$6,490 U
b.
$5,303 F
c.
$6,490 F
d.
$5,303 U
• Question
3
5 out of 5 points
Lesinski Snow Removal's cost
formula for its vehicle operating cost is $1,770 per month plus $483 per
snow-day. For the month of February, the company planned for activity of 19
snow-days, but the actual level of activity was 24 snow-days. The actual vehicle
operating cost for the month was $13,070. The spending variance for vehicle
operating cost in February would be closest to:
a.
$2,123 U
b.
$292 F
c.
$2,123 F
d.
$292 U
• Question
4
5 out of 5 points
Dunklin Medical Clinic measures its activity
in terms of patient-visits. Last month, the budgeted level of activity was
1,620 patient-visits and the actual level of activity was 1,540 patient-visits.
The cost formula for administrative expenses is $3.20 per patient-visit plus
$14,300 per month. The actual administrative expense was $21,050. In the
clinic's flexible budget performance report for last month, the spending
variance for administrative expenses was
a.
$118 F
b.
$256 F
c.
$1,566 U
d.
$1,822 U
