ch13 survey of accounting

The total estimated sales for the coming year is 25,000 units. The estimated inventory at the beginning of the year is 2,250 units, and the desired inventory at the end of the year is 3,000 units. The total production indicated in the production budget is:

25,750

​A hotel has 50 suites in total, and the number of booked suites for the month of April is 20. Calculate the occupancy rate of suites of the hotel.

40%

Assume that projected selling and administrative expenses for the month of March are $120,000. Included in this estimated monthly expense is depreciation, insurance, and property taxes of $10,000. Seventy percent of the expenses are to be paid in the month in which they are incurred with the balance to be paid in the following month. What amount should be included in the schedule of cash payments for selling and administrative expenses in Apriil to pay for March expenses?

$33,000

Assume the preparation of a flexible selling and administrative expense budget for July for sales volumes of $600,000 and $800,000. What amount should be included for sales commission for July if the sales volume is $600,000? (chart)

$36,000

Bower Company produced 4,000 units of product. The direct labor standard quantity is 0.5 hours per unit. The standard labor rate is $12 per hour. Actual direct labor for the period was $22,000 (2,200 hours × $10 per hour). The direct labor rate variance is:

$4,400 favorable

The actual and standard direct materials costs for producing a specified quantity of product are as follows: (chart) Actual = 51,000 pounds at $5.05 per pound($257,550) Standard = 50,000 pounds at $5.00 per pound($250,000) The direct materials quantity variance is:

$5,000 unfavorable

Dixon Company expects $65,000 of credit sales in March and $80,000 of credit sales in April. Dixon historically collects 70% of its sales in the month of sale and 30% in the following month. How much cash does Dixon expect to collect in the month of April for the April credit sales?

$56,000

Dixon Company expects $65,000 of credit sales in March and $80,000 of credit sales in April. Dixon historically collects 70% of its sales in the month of sale and 30% in the following month. How much cash does Dixon expect to collect in April?

$75,500

What budgeting system requires managers to estimate sales, production, and other operating data as though operations are being started for the first time?

Zero-based budget

What is the difference between the actual costs and the standard cost at actual volumes called?

cost variance

The first budget customarily prepared as part of an entity's master budget is the _____.

sales budget

Standard cost per unit is calculated as _____.

standard price multiplied by standard quantity

Access the truth of this statement: Setting budget goals too tightly may have a negative effect on the ability of the copany to achieve its goals.

true

Access the truth of this statement: a cash budget involves advance planning so that a cash shortage does not arise and excess cash is not permit-ted to remain "idle."

true

If total sales for the month is estimated to be $200,000 and 40% of the sales are sales on account, what is the estimated amount of the cash sales for this month?

$120,000

Assume the preparation of a flexible selling and administrative expense budget for July for sales volumes of $600,000 and $800,000. What amount should be included for total customer support expense (variable cost plus fixed cost) for July if the sales volume is $800,000? (chart)

$130,000

Dixon Company expects $65,000 of credit sales in March and $80,000 of credit sales in April. Dixon historically collects 70% of its sales in the month of sale and 30% in the following month. How much cash does Dixon expect to collect in the month of April for the March credit sales?

$19,500

Bower Company produced 4,000 units of product. The direct labor standard quantity is 0.5 hours per unit. The standard labor rate is $12 per hour. Actual direct labor for the period was $22,000 (2,200 hours × $10 per hour). The direct labor time variance is:

$2,400 unfavorable

The actual and standard direct materials costs for producing a specified quantity of product are as follows: (chart) The direct materials price variance is:

$2,550 unfavorable

Assume that projected selling and administrative expenses for the month of March are $120,000. Included in this estimated monthly expense is depreciation, insurance, and property taxes of $10,000. Seventy percent of the expenses are to be paid in the month in which they are incurred with the balance to be paid in the following month. What amount should be included in the schedule of cash payments for selling and administrative expenses for March?

$77,000

If the expected sales volume for the current period is 25,000 units, the desired ending inventory is 700 units, and the beginning inventory is 450 units, the number of units set forth in the production budget, representing total production for the current period, is _____.

25,250 units

What is the cash budget?

A budget of estimated cash receipts and cash payments.

What is the report called that summarizes actual costs, standard costs, and the differences for the units produced?

Budget performance report

Static budgets are often used:

By administrative departments

What budgeting system requires managers to present a budget that adjusts for varying levels of activities?.

Flexible budget

What is the term that refers to the range of activity over which changes in cost are of interest to management?

Relevant range

Which of the following is not one of the major objectives of budgeting?

To analyze whether there is a need for expanding the customer base

What term is used to describe a "cushion" or "adding" put in a budget for unexpected events or improve the appearance of operations?

budgetary slack