Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1-Webster Corporation is preparing its cash budget for April. The March 31 cash balance is $38,400. Cash receipts are expected to be $651,000 and cash

1-Webster Corporation is preparing its cash budget for April. The March 31 cash balance is $38,400. Cash receipts are expected to be $651,000 and cash payments for purchases are expected to be $613,500. Other cash expenses expected are $28,000 selling and $34,500 general and administrative. The company desires a minimum cash balance at the end of each month of $40,000. If necessary, the company borrows enough cash to meet the minimum using a short-term note. The amount Webster must borrow during April is:

Multiple Choice

  • $0.

  • $26,600.

  • $13,400.

  • $115,900.

  • $75,900.

2- Claremont Company sells refurbished copiers. During the month, the company sold 155 copiers for total sales of $387,500. The budget for the month was to sell 150 copiers at an average price of $2,700. The sales price variance for the month was:

Multiple Choice

  • $17,500 unfavorable.

  • $17,500 favorable.

  • $31,000 unfavorable.

  • $27,000 unfavorable.

  • $31,000 favorable.

3-Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period:

Office Expenses Total Allocation Basis
Salaries $ 48,000 Number of employees
Depreciation 28,000 Cost of goods sold
Advertising 62,000 Net sales

Item Drilling Grinding Total
Number of employees 1,600 2,400 4,000
Net sales $ 366,000 $ 549,000 $ 915,000
Cost of goods sold $ 117,800 $ 192,200 $ 310,000

The amount of depreciation that should be allocated to Drilling for the current period is:

Multiple Choice

  • $28,000.

  • $38,440.

  • $10,640.

  • $17,360.

  • $62,000.

4- CakeCo, Inc. has three operating departments. Information about these departments is listed below. Maintenance is service department at CakeCo that incurred $11,700 of costs during the period. If allocated maintenance cost is based on floor space occupied by each of the operating departments, compute the amount of maintenance cost allocated to the Baking Department.

Mixing Baking Packaging
Direct costs $ 24,000 $ 18,000 $ 12,000
Sq. ft. of space 1,300 1,950 650

Multiple Choice

  • $300.

  • $900.

  • $5,200.

  • $7,800.

  • $5,850.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Theory And Analysis Text And Cases

Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey

9th Edition

9780470128817

More Books

Students also viewed these Accounting questions