1) For the next six months, Rushford Designs projects the following information (in units).

	July	Aug.	Sept.	Oct.	Nov.	Dec.
Retail demand	300	300	450	450	600	600
Dealer demand	600	750	900	1,050	1,200	1,350
Shop capacity	1,500	1,500	1,500	1,500	1,500	1,500
Painting capacity	1,050	1,050	1,050	1,800	1,800	1,800

Demand drives production for that month and cannot be carried over from one month to another. Retail customers are satisfied first.

The number of dealer units that will be produced and sold in September is.?

Produce

Fish & Meat

Sundries

Total

2) Buddy Industries, Inc., (BII) developed the following standard costs for direct material and direct labor for one of their major products, the 10-gallon plastic container.

	Standard quantity	Standard price
Direct materials	0.10 pounds	$30 per pound
Direct labor	0.05 hours	$15 per hour

During August, BII produced and sold 10,000 containers using 980 pounds of direct materials at an average cost per pound of $32 and 500 direct labor hours at an average wage of $15.25 per hour.

August's direct material cost variance was?

3) The management accountant for the C.R. Groceries has prepared the following segmented income statement for the most current year.

If the Fish & Meat department had been discontinued, the short-term effect on corporate profits would be a decrease of?

4) For the following activity, characteristic, or application, identify whether it is found in a (A) Centralized organization, (B) Decentralized organization, or (C) Both types of organizations.

Freedom for managers at lower organizational levels to make decisions

Sales	$80,000	$120,000	$60,000	$220,000
Variable expenses	36,000	65,000	20,000	121,000
Contribution margin	44,000	55,000	40,000	99,000
Other costs	18,000	21,000	8,000	47,000
Segment margin	26,000	34,000	32,000	52,000
Allocated avoidable costs	2,000	3,000	3,000	8,000
Segment income	24,000	31,000	29,000	44,000
Allocated corporate costs	7,000	7,000	7,000	21,000
Corporate profit	$17,000	$ 24,000	$ 22,000	$ 23,000

5) For the following activity, characteristic, or application, identify whether it is found in a (A) Centralized organization, (B) Decentralized organization, or (C) Both types of organizations.

Best suited to organizations within stable environments

6) ________ include an expected cash flow statement, the projected balance sheet, and the projected income statement.

7) True or False: Sunk costs are usually relevant costs for decision making.

8) True or False:

The usual starting point in budgeting is to make a forecast of net income.