ACC 213 - EXAM 3

CHECK CH.8 question 7-10

!!!!!!!!!!!!!!! - with explanation

The BRS corporation makes collections on sales according to the following schedule:

$137,000 June (150,000x30%) 45,000 May (130,000x60%) 78,000 April (140,000x10%) 14,000 total cash collections in June - 137,000

Seventy percent of the Pitkin corporations sales are collected in the month of the sale, 20% in the month following sale. The following are budgeted sales data for the company:

$275,000 Explanation: Feb. Sales (300,000 x 10%) 30,000 Mar Sales (350,000x20%) 70,000 April Sales (250,000x70%)175,000 Total Cash collections - $275,000

Which of the following budgets are prepared before the sales budget?

Budgeted Income Statement: No Direct Labor Budget: No

Question 1-8 on CHAP 9 and 10 REVIEW

IMPORTANTE

Which of the following statements is NOT correct concerning the cash budget

It is not necessary to prepare any other budgets before preparing the Cash Budget

The general model for calculating a quantity variance is:

Standard price x (Actual quantity of inputs used - Standard quantity allowed for output).

Which of the following statements is NOT correct concerning the Manufacturing Overhead Budget?

The Manufacturing Overhead Budget shows the variable portion of manufacturing overhead.

The usual starting point for a master budget is:

The sales forecast or sales budget

The standard quantity or standard hours allowed refers to the amount of the input that should have been used to produce the actual output of the period

True

the general model for calculating a price variance is:

actual quantity of inputs x (actual price - standard price)

a static budget:

is valid for only one level of activity

there are various budgets within the master budget. One of these budgets is the production budget. Which of the following BEST describes the production budget?

it is calculated based on the sales budget and the desired ending inventory

which department should usually be held responsible for an unfavorable materials price variance?

purchasing

When preparing a direct materials budget, the required purchases of raw materials in units equals:

raw materials needed to meet the production schedule + desired ending inventory of raw materials - beginning inventory of raw materials.

which of the following comparisons best isolates the impact of change in activity on performance

static planning budget and flexible budget

which of the following would not appear on a flexible budget performance report as shown in the text?

the previous year's actual costs.

A favorable labor rate variance indicates that

the standard rate exceeds the actual rate