11. Joslyn Company manufactures metal brackets.The estimated number of metal bracket sales for the first three months of the current year is:

Month

Unit Sales

January

1,250

February

1,400

March

1,200

Finished goods inventory at the end of last December was 300 units.Desired ending finished goods inventory is equal to 20 percent of the next month's sales.Joslyn Company expects to sell the brackets for $20 each.

How many brackets should Joslyn produce in January?

A)1,960

B)1,230

C)1,400 D) 1,300

12._______ Black Horse Transportation's sales budget for the first quarter follows:

January $125,000

February $300,000

March$290,000

All sales are on account (credit) with 50% collected in the month of sale, 30% collected in the following month after sale, and 20% collected in the second month after sale.There are no uncollectable accounts.

The account receivable balance that would appear on the balance sheet for March is:

A)$142,500

B)$205,000

C)$150,500 D) $105,000

13. _______ Budgets based on the actual level of output, rather than the output originally budgeted, are called:

A)Activity budgets

B)Flexible budgets

C)Operating budgets

D)Static budgets

14._____ Assume that the standard cost to make one finished unit includes 1 hour of direct labor at $4 per hour.During March, 11,000 direct labor hours were worked, 5,250 units of product were manufactured, and total direct labor cost was $40,000.What is the labor rate variance for April?

A)$2,000 (U)

B)$2,000 (F)

C)$4,000 (U)

D)$4,000 (F)

15.______ Which of the following factors describes a possible cause for an unfavorable materials price variance?

A)Last minute purchases

B)Vendors flooding the marketplace with their products

C)Purchasing low quality materials

D)Making a long-term commitment with one vendor for a specific raw material

16. ______ If the actual labor rate exceeds the standard labor rate and if the actual labor-hours exceed the number of hours allowed, the total flexible budget variance will be:

A)Favorable

B)Unfavorable

C)Equal to labor rate variance

D)Unable to be determined

17. ______ The variance that measures the amount of variable overhead that should have been saved (or incurred) because of the efficient (or inefficient) useof the measurement base is the:

A)Variable overhead spending variance

B)Variable overhead efficiency variance

C)Fixed overhead budget variance

D)Fixed overhead volume variance

18. ______ The management of Brickstone Industries is analyzing fixed manufacturing overhead variances for the fiscal period just ended.It notices that the total fixed manufacturing overhead variance was$240,000 unfavorable and that the fixed overhead budget variance was$100,000 favorable.However, Brickstone's accountants has failed to calculate the fixed overhead volume variance.The standard fixed overhead rate was $10 per machine hour.What is Brickstone's fixed overhead volume variance?

A)$140,000 (F)

B)$340,000 (F)

C)$200,000 (U) D) $340,000 (U)

19. ______ The fixed overhead budget variance is always the same as the total fixedoverhead flexible budget variance.

A)True

B)False

20. ______A static budget is a budget prepared before the beginning of the budget period based on expected level of operations; whereas, a flexible budget is prepared after the fact based on actual operations.

A)True

False