1. Calgary Industries is preparing a budgeted income statement for 2015 and has accumulated the following information. Predicted sales for the year are $685,000 and cost of goods sold is 40% of sales. The expected selling expenses are $76,500 and the expected general and administrative expenses are $85,500, which includes $18,500 of depreciation. The companies income tax rate is 30%. The budgeted net income for 2015 is:

2.Claremont Company specializes in selling refurbished copiers. During the month, the company sold 140 copiers for total sales of $308,000. The budget for the month was to sell 135 copiers at an average price of $2,400. The sales price variance for the month was.

3. A company's flexible budget for 16,000 units of production showed sales, $96,000; variable costs, $56,000; and fixed costs, $19,000. The operating income expected if the company produces and sells 20,000 units is (Do not round intermediate calculations):

4. A company rents a building with a total of 120,000 square feet, which are evenly divided between two floors. The company allocates the rent for space on the first floor at twice the rate of space on the second floor. The total monthly rent for the building is $27,000. How much of the monthly rental expense should be allocated to a department that occupies 14,000 square feet on the first floor? (Do not round your intermediate calculations.)

5. The sales budget for Modesto Corp. shows that 20,300 units of Product A and 22,300 units of Product B are going to be sold for prices of $10.30 and $12.30, respectively. The desired ending inventory of Product A is 10% higher than its beginning inventory of 2,300 units. The beginning inventory of Product B is 2,800 units. The desired ending inventory of B is 3,300 units. Budgeted purchases of Product A for the year would be:

6. Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,270,000; sales of $4,695,000; cost of goods sold of $2,720,000; and operating expenses of $1,542,000. Compute the division's return on investment:

7. Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $7,000. The division sales for the year were $1,054,000 and the variable costs were $864,000. The fixed costs of the division were $197,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be:

8. The standard materials cost to produce 1 unit of Product R is 9 pounds of material at a standard price of $53 per pound. In manufacturing 5,000 units, 44,000 pounds of material were used at a cost of $54 per pound. What is the total direct materials cost variance?

9. The Gardner Company expects sales for October of $249,000. Experience suggests that 45% of sales are for cash and 55% are on credit. The company collects 50% of its credit sales in the month of sale and 50% in the month following sale. Budgeted Accounts Receivable on September 30 is $67,500. What is the amount of Accounted Receivables on the October 31 budgeted balance sheet? (Round your intermediate calculations to two decimal places.)

10. A July sales forecast projects that 7,800 units are going to be sold at a price of $12.30 per unit. The management forecasts 15% growth in sales each month. Total July sales are anticipated to be:

11. Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $9.70; direct labor, $23.70, and overhead, $15.70. An outside supplier has offered to sell the product to Wheeler for $44.72. If Wheeler buys from the supplier, it will still incur 40% of its overhead cost. Compute the net incremental cost or savings of buying.

12. Levelor Company's flexible budget shows $10,800 of overhead at 75% of capacity, which was the operating level achieved during May. However, the company applied overhead to production during May at a rate of $2.00 per direct labor hour based on a budgeted operating level of 6,210 direct labor hours (90% of capacity). If overhead actually incurred was $11,282 during May, the controllable variance for the month was:

13. The sales budget for Modesto Corp. shows that 21,900 units of Product A and 23,900 units of Product B are going to be sold for prices of $11.90 and $13.90, respectively. The desired ending inventory of Product A is 10% higher than its beginning inventory of 3,900 units. The beginning inventory of Product B is 4,400 units. The desired ending inventory of B is 4,900 units. Budgeted purchases of Product B for the year would be:

14. Claremont Company specializes in selling refurbished copiers. During the month, the company sold 140 copiers at an average price of $2,200 each. The budget for the month was to sell 135 copiers at an average price of $2,400. The expected total sales for 140 copiers were.

15. Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,250,000; sales of $4,675,000; cost of goods sold of $2,700,000; and operating expenses of $1,522,000. Assume a target income of 9% of average invested assets. Compute residual income for the division:

16. Summerlin Company budgeted 5,200 pounds of material costing $4.00 per pound to produce 2,000 units. The company actually used 5,700 pounds that cost $4.10 per pound to produce 2,000 units. What is the direct materials price variance?

17. Zhang Industries budgets production of 280 units in June and 290 units in July. Each unit requires 1.5 hours of direct labor. The direct labor rate if $13.60 per hour. The indirect labor rate is $20.60 per hour. Compute the budgeted direct labor cost for July.

18. Product A has a sales price of $17 per unit. Based on a 15,000-unit production level, the variable costs are $9 per unit and the fixed costs are $5 per unit. Using a flexible budget for 17,500 units, what is the budgeted operating income from Product A?

19. A company's flexible budget for 45,000 units of production showed variable overhead costs of $60,750 and fixed overhead costs of $61,000. The company incurred overhead costs of $109,780 while operating at a volume of 37,000 units. The total controllable cost variance is:

20. Zhang Industries sells a product for $710. Unit sales for May were 500 and each month's sales are expected to exceed the prior month's results by 2%. Zhang pays a sales manager a monthly salary of $4,300 and a commission of 1% of sales. Compute the projected selling expense to be reported on the selling expense budget for the manager for month ended June 30.