ACCT
Jones Company developed the following static budget at the beginning of the company's accounting period: Revenue (10,100 units)$20,200 Variable costs 5,050 Contribution margin$15,150 Fixed costs 5,050 Net income$10,100 If actual production totals 10,500 units, the flexible budget would show total costs of:
10300
Burruss Company developed a static budget at the beginning of the company's accounting period based on an expected volume of 5,000 units: Per UnitRevenue$7.00 Variable costs 1.50 Contribution margin$5.50 Fixed costs 3.00 Net income$2.50 If actual production totals 6,000 units which is within the relevant range, the flexible budget would show fixed costs of:
15000
Oakton Furniture provided the following information relevant to its sales for December Year 1 and the first quarter of Year 2: Dec. Year 1 Jan. Year 2 Feb. Year 2 Mar. Year 2 (Actual) (Budgeted) (Budgeted) (Budgeted)Credit sales$65,000 $145,000 $160,000 $115,000 Cash sales$15,000 $30,000 $35,000 $17,000 Based on the company's collection history, 47% of credit sales are collected in month of sale and the remainder is collected in the following month.Cash collections in January from December credit sales would be:
34450
The following static budget is provided: Per Unit TotalSales$70 $1,050,000 Less variable costs: Manufacturing costs 30 450,000 Selling and administrative costs 20 300,000 Contribution margin$20 $300,000 Less fixed costs: Manufacturing costs 80,000 Selling and administrative costs 138,000 Total fixed costs: 218,000 Net income $82,000 What will be the overall volume variance if 18,000 units are produced and sold?
60000 F
The following static budget is provided: Units 24,000 UnitsSales$288,000 Less variable costs: Manufacturing costs$81,600 Selling and administrative costs$45,600 Contribution margin$160,800 Less fixed costs: Manufacturing costs$43,200 Selling and administrative costs$32,400 Net Income$85,200 What will budgeted net income equal if 22,000 units are produced and sold? (Do not round intermediate calculations.)
71800
Chu Company provided the following information related to its inventory sales and purchases for December Year 1 and the first quarter of Year 2: Dec. Year 1 Jan. Year 2 Feb. Year 2 Mar. Year 2 (Actual) (Budgeted) (Budgeted) (Budgeted)Cost of goods sold$39,000 $69,000 $89,000 $59,000 Desired ending inventory levels are 25% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February Year 2 would be:
81500
Skymont Company wants an ending inventory each month equal to 23% of that month's cost of goods sold. Cost of goods sold for February is projected at $93,000. Ending inventory at the end of January was $15,000. Based on this information, purchases for February would be:
99390
Which of the following is a true statement?
All of the answers are correct.
Expressing plans for a business in financial terms is commonly called:
Budgeting
Which of the following budgets or schedules uses data contained in the selling and administrative expense budget?
CP Schedule
Budgeted depreciation expense would not appear on a:
Cash budget
The Russell Company provides the following standard cost data per unit of product: Direct material (3 gallons @ $4 per gallon)$12.00 Direct labor (3 hours @ $10 per hour)$30.00 During the period, the company produced and sold 25,000 units incurring the following costs: Direct material72,000gallons@$3.90per gallonDirect labor70,500hours@$10.05per hour The direct material usage variance was:
$12,000 favorable.
Cheyenne Company has budgeted the following information for June: Cash receipts$271,000 Beginning cash balance 5,000 Cash payments 280,000 Desired ending cash balance 25,000 If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments and interest is paid monthly at 1% on the first day of the following month. The company had no debt before June 1st. The amount of interest paid on July 1 would be:
290
Markham Company has completed its sales budget for the first quarter of Year 2. Projected credit sales for the first four months of the year are shown below: January$21,000 February$27,000 March$36,000 April$39,000 The company's past records show collection of credit sales as follows: 32% in the month of sale and the balance in the following month. The total cash collection from receivables in March is expected to be:
29880
Barnes Company expects to begin operating on January 1. The company's master budget contained the following operating expense budget: January February MarchSalary expense$36,000 $36,000 $36,000 Sales commissions, 5% of sales 30,000 32,000 24,000 Utilities 2,800 2,800 2,800 Depreciation on store equipment 1,000 1,000 1,000 Rent 7,200 7,200 7,200 Miscellaneous 1,800 1,800 1,800 Total operating expenses$78,800 $80,800 $72,800 Sales commissions are paid in cash in the month following the month in which the expense is recognized. All other expense items requiring cash payment are paid in the month in which they are recognized. The amount of accumulated depreciation appearing on the company's March 31 pro forma balance sheet is:
3000
Assuming actual volume is 10,000 units and planned volume is 12,000 units, the sales volume variance in units:
Equals 2,000 units unfavorable.
Four purposes or advantages for budgeting involve planning, coordination, performance measurement, and punitive action.
F
Under all circumstances, unfavorable variances are bad; favorable variances are good.
False
Select the correct statement from the following, assuming Carmichael Company had a favorable direct materials price variance of $1,500 and an unfavorable direct materials usage variance of $1,000.
The total direct materials variance is $500 favorable.
A favorable flexible budget materials variance may indicate that the price per unit of materials was lower than expected and that less material was used than expected or either of these.
True
The cash budget is not the same as the pro forma cash flow statement.
True
The differences between the standard and actual amounts are called variances.
True
