1. Direct materials inventories are kept in pounds inBonitaCompany, and the total pounds of direct materials needed for production is10000. If the beginning inventory is900pounds and the desired ending inventory is2200pounds, the total pounds to be purchased are?

A. 10100.

B. 10200.

C. 10400.

D. 11300.

2. Sunland Companyrequired production for June is82000units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are250000and280000pounds, respectively. How many pounds of direct material Z must be purchased?

A. 228000.

B. 246000.

C. 258000.

D. 276000.

3. Crane Companydetermines that44000pounds of direct materials are needed for production in July. There are2200pounds of direct materials on hand at July 1 and the desired ending inventory is1800pounds. If the cost per unit of direct materials is $3, what is the budgeted total cost of direct materials purchases?

A. $128400.

B. $130800.

C. $133200.

D. $135600.

4. Sunland Companyis preparing its direct labor budget for May. Projections for the month are that32400units are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $12, what is the total budgeted direct labor cost for May?

A. $1123200.

B. $1144800.

C. $1166400.

D. $1296000.

5. A company determined that the budgeted cost of producing a product is $30per unit. On June 1, there were78000units on hand, the sales department budgeted sales of280000units in June, and the company desires to have100000units on hand on June 30. The budgeted cost of goods sold for June would be?

A. $7740000.

B. $8400000.

C. $9060000.

D. $10740000.

6. Concord Corporationexpects to purchase $80000of materials in July and $120000of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. How much will August's cash disbursements for materials purchases be?

A. $60000

B. $90000

C. $110000

D. $120000

7. On January 1,Waterway Industrieshas a beginning cash balance of $196000. During the year, the company expects cash disbursements of $980000and cash receipts of $780000. IfWaterwayrequires an ending cash balance of $140000,Waterway Industriesmust borrow?

A. $136000.

B. $140000.

C. $144000.

D. $396000.

8. Bramble Corp.has31000units in beginning finished goods. If sales are expected to be170000units for the year andBrambledesires ending finished goods of34000units, how many units must the company produce?

A. 167000

B. 170000

C. 173000

D. 204000

9. Swifty Corporation's direct materials budget shows total cost of direct materials purchases for January $350000, February $400000and March $450000. Cash payments are60% in the month of purchase and40% in the following month. The budgeted cash payments for March are?

A. $430000.

B. $420000.

C. $400000.

D. $340000.

10. The production budget shows expected unit sales of25000. Beginning finished goods units are3800. Required production units are26600. What are the desired ending finished goods units?

A. 2200

B. 3800

C. 6500

D. 5400

11. The production budget shows that expected unit sales are47000. The total required units are54000. What are the required production units?

A. 7000

B. 10500

C. 14000

D. Cannot be determined from the data provided

12. A company budgeted unit sales of154000units for January, 2020 and160000units for February 2020. The company has a policy of having an inventory of units on hand at the end of each month equal to30% of next month's budgeted unit sales. If there were46200units of inventory on hand on December 31, 2019, how many units should be produced in January, 2020 in order for the company to meet its goals?

A. 155800units

B. 154000units

C. 152200units

D. 202000units

13. At January 1, 2019,Coronado Industrieshas beginning inventory of3500surfboards.Coronadoestimates it will sell11000units during the first quarter of 2019 with a12% increase in sales each quarter.Coronado's policy is to maintain an ending inventory equal to25% of the next quarter's sales. Each surfboard costs $100and is sold for $150. How much is budgeted sales revenue for the third quarter of 2019?

A. $543750

B. 2193750

C. $2069760

D. $13798.40

14. Swifty Corporationis planning to sell600boxes of ceramic tile, with production estimated at770boxes during May. Each box of tile requires44pounds of clay mix and a0.50hour of direct labor. Clay mix costs $0.40per pound and employees of the company are paid $18per hour. Manufacturing overhead is applied at a rate of110% of direct labor costs.Swiftyhas4600pounds of clay mix in beginning inventory and wants to have5000pounds in ending inventory.

What is the total amount to be budgeted for manufacturing overhead for the month?

A. $7623

B. $5940

C. $30492

D. $23760

15. Sunland Companyplans to sell360potted plants during April and260units in May.Sunland Companykeeps15% of the next month's sales as ending inventory. How many units shouldSunland Companyproduce during April?

A. 345

B. 375

C. 360

D. 399

16. CraneManufacturing uses a flexible budget. It has the following budgeted manufacturing costs for24000pairs of shoes: Fixed Manufacturing Costs, $11500and Variable Manufacturing Costs, $10.00per pair of shoes. IfCraneManufacturing makes19000pairs of shoes this month, what are the total budgeted manufacturing cost for the month?

A. $190000.

B. $251500.

C. $240000.

D. $201500.

17. Vaughn Manufacturing had average operating assets of $5000000and sales of $2500000in 2016. If the controllable margin was $450000, the ROI was?

A. 50%

B. 36%

C. 18%

D. 9%

18. Sheridan Companyis evaluating its Piquette division, an investment center. The division has a $48000controllable margin and $300000of sales. How much willSheridan's average operating assets be when its return on investment is10%?

A. $480000

B. $528000

C. $300000

D. $252000

19. If an investment center has generated a controllable margin of $300000and sales of $500000, what is the return on investment for the investment center if average operating assets were $2500000during the period?

A. 12%

B. 60%

C. 8%

D. 20%

20. Crane Companyhad sales of $300000, variable costs of $100000, and direct fixed costs totaling $100000. The company's operating assets total $600000, and its required return is10%. How much is the residual income?

A. $40000

B. $40000

C. $60000

D. $240000

21. Sunland Companyuses flexible budgets. At normal capacity of11000units, budgeted manufacturing overhead is $88000variable and $360000fixed. IfSunlandhad actual overhead costs of $462000for14000units produced, what is the difference between actual and budgeted costs?

A. $10000favorable

B. $10000unfavorable

C. $14000favorable

D. $24000favorable

22. A department has budgeted monthly manufacturing overhead cost of $450000plus $3per direct labor hour. If a flexible budget report reflects $954000for total budgeted manufacturing cost for the month, the actual level of activity achieved during the month was?

A. 468000direct labor hours.

B. 168000direct labor hours.

C. 318000direct labor hours.

D. cannot be determined from the information provided.

23. For June,Waterway Industriesestimated sales revenue at $800000. It pays sales commissions that are4% of sales. The sales manager's salary is $305000, estimated shipping expenses total1% of sales, and miscellaneous selling expenses are $25000. How much are budgeted selling expenses for the month of July if sales are expected to be $740000?

A. $62000

B. $367000

C. $37000

D. $370000

24. Sheridan Companyuses flexible budgets. At normal capacity of21000units, budgeted manufacturing overhead is: $63000variable and $270000fixed. If Stone had actual overhead costs of $334400for23000units produced, what is the difference between actual and budgeted costs?

A. $4600unfavorable

B. $4600favorable

C. $13800unfavorable

D. $18400favorable

25. At13000direct labor hours, the flexible budget for indirect materials is $26000. If $28400are incurred at13400direct labor hours, the flexible budget report should show the following difference for indirect materials:

A. $2400unfavorable.

B. $2400favorable.

C. $1600favorable.

D. $1600unfavorable.

26. OrioleCompany had the following operating data for the year for its computer division: sales, $651000; contribution margin, $142000; total fixed costs (controllable), $96000; and average total operating assets, $272000. What is the controllable margin for the year?

A. 52%.

B. 15%.

C. $46000.

D. $142000.

27. If an investment center has a $96000controllable margin and $1280000of sales, what average operating assets are needed to have a return on investment of10%?

A. $128000

B. $224000

C. $960000

D. $1280000

28. Oriole Companyprepared a 2019 budget for120000units of product. Actual production in 2019 was145000units. To be most useful, what amounts should a performance report for this company compare?

A. The actual results for145000units with the original budget for120000units.

B. The actual results for145000units with a new budget for145000units.

C. The actual results for145000units with last year's actual results for149000units.

D. It doesn't matter. All of these choices are equally useful.

29. If a company plans to sell34000units of product but sells46000, the most appropriate comparison of the cost data associated with the sales will be by a budget based on

A. the original planned level of activity.

B. 40000units of activity.

C. 46000units of activity.

D. 34000units of activity.

30. In theMarigold Corp., indirect labor is budgeted for $63000and factory supervision is budgeted for $34000at normal capacity of140000direct labor hours. If160000direct labor hours are worked, flexible budget total for these costs is

A. $97000.

B. $110857.

C. $106000.

D. $101857.