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Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials price variance is:

$22,500 unfavorable.

An example of a sunk cost is

book value of old machine

The potential benefits lost by taking a specific action when two or more alternative choices are available is known as a(n):

oppurtunity cost

A cost that requires a future outlay of cash, and is relevant for current and future decision making, is a(n):

out of pocket cost

If budgeted beginning inventory is $8,300, budgeted ending inventory is $9,400, and budgeted cost of goods sold is $10,260, budgeted purchases should be:

$11,360

Based on predicted production of 12,000 units, a company anticipates $150,000 of fixed costs and $123,000 of variable costs. The flexible budget amounts of fixed and variable costs for 10,000 units are:

$150,000 fixed and $102,500 variable.

Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Bartels' standard labor cost is $12 per hour. During August, Bartels produced 10,000 units and used 21,040 hours of direct labor at a total cost of $250,376. What is Bartels' labor rate variance for August?

$2,104 favorable.

The following company information is available for March. The direct materials price variance is:

$5,000 unfavorable.

Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials quantity variance is:

$50,000 favorable.

Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3 per unit. Bluebird currently produces and sells 75,000 units at $7.00 each. This level represents 80% of its capacity. Production costs for these units are $3.50 per unit, which includes $2.25 variable cost and $1.25 fixed cost. If Bluebird accepts this additional business, the effect on net income will be:

11,250 increase

A company manufactures and sells a product for $120 per unit. The company's fixed costs are $68,760, and its variable costs are $90 per unit. The company's break-even point in units is:

2,292

Summerlin Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units. What is the direct materials quantity variance?

2,500 unfavorable

A company's flexible budget for 12,000 units of production showed per unit contribution margin of $3.00 and fixed costs, $20,000. The operating income expected if the company produces and sells 18,000 units is:

34,000

Benjamin Company had the following results of operations for the past year:A foreign company (whose sales will not affect Benjamin's market) offers to buy 4,000 units at $7.50 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $600 and selling and administrative costs by $300. If Benjamin accepts the offer, its profits will:

4,300

A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company has just produced 1,000 units of this product, using 5,200 pounds of Material J that cost $9,880. The direct materials quantity variance is:

400 unfavorablle

The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $50 per pound. In manufacturing 8,000 units, 47,000 pounds of material were used at a cost of $51 per pound. What is the total direct materials cost variance?

50,000 favorable

A formal statement of future plans, usually expressed in monetary terms, is a:

Budget.

A managerial accounting report that presents predicted amounts of the company's assets, liabilities, and equity as of the end of the budget period is called a(n):

Budgeted balance sheet.

Which of the following factors is least likely to be considered in preparing a sales budget?

Budgeted balance sheet.

A managerial accounting report that presents predicted amounts of the company's revenues and expenses for the budget period is called a:

Budgeted income statement.

A plan that lists dollar amounts to be received from disposing of plant assets and dollar amounts to be spent on purchasing additional plant assets is called a:

Capital expenditures budget.

A plan that shows the expected cash inflows and cash outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans, is called a(n):

Cash budget.

A company is considering a new project that will cost $19,000. This project would result in additional annual revenues of $6,000 for the next 5 years. The $19,000 cost is an example of a(n):

Incremental cost.

An additional cost incurred only if a company pursues a particular course of action is a(n):

Incremental cost.

Which of the following budgets is not a budget that a manufacturer would include in its master budget?

Merchandise purchases budget.

A cost that requires a future outlay of cash, and is relevant for current and future decision making, is a(n):

Out-of-pocket cost.

A plan that states the number of units to be produced in a future period, based on the projected unit sales and inventory considerations, is the:

Production budget.

Which of the following must be prepared before the direct labor budget?

Production budget.

A cost that cannot be avoided or changed because it arises from a past decision, and is irrelevant to future decisions, is called a(n):

Sunk cost.