Question
26. Ari, Inc. is working on its cash budget for December. The budgeted beginning cash balance is $14,000. Budgeted cash receipts total $127,000 and budgeted
26. Ari, Inc. is working on its cash budget for December. The budgeted beginning cash balance is $14,000. Budgeted cash receipts total $127,000 and budgeted cash disbursements total $126,000. The desired ending cash balance is $40,000. To attain its desired ending cash balance for December, the company needs to borrow:
a.) $25,000.
b.) $0.
c.) $55,000.
d.) $40,000.
27. The Express Company is preparing its cash budget for the month of June. The following information is available concerning its inventories:
Inventories at beginning of June | $ | 67,500 | |
Estimated purchases of June | 330,000 | ||
Estimated cost of goods sold for June | 337,500 | ||
Estimated payments in June for purchases in May | 56,250 | ||
Estimated payments in June for purchases prior to May | 15,000 | ||
Estimated payments in June for purchases in June | 80 | % | |
What are the estimated cash disbursements for inventories in June?
a.) $264,000.
b.) $320,250.
c.) $335,250.
d.) $341,250.
28. TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. TaskMaster has established the following standards for the prime costs of one unit of product.
Standard | Standard | Standard | ||||||||||
Quantity | Price | Cost | ||||||||||
Direct Materials | 8 | pounds | $ | 1.80 | per pound | $ | 14.40 | |||||
Direct Labor | .25 | hour | $ | 8.00 | per hour | 2.00 | ||||||
$ | 16.40 | |||||||||||
During November, TaskMaster purchased 160,000 pounds of direct materials at a total cost of $304,000. The total factory wages for November were $42,000, 90% of which were for direct labor. TaskMaster manufactured 19,000 units of product during November using 142,500 pounds of direct materials and 5,000 direct labor hours.
Is the direct labor price (rate) variance favorable or unfavorable?
a.) Favorable.
b.) Unfavorable.
29.
Actual machine hours | 840 | ||
Standard machine hours allowed | 900 | ||
Denominator activity (machine hours) | 1,000 | ||
Actual fixed overhead costs | $ | 3,800 | |
Budgeted fixed overhead costs | $ | 4,000 | |
Predetermined overhead rate ($1 variable + $4 fixed) | $ | 5 | |
Is the fixed overhead spending (budget) variance favorable or unfavorable?
a.) Favorable.
b.) Unfavorable.
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