Accounting Homework Questions

1.

Alyssum, Inc, a merchandising company, has provided the following extracts from their budget for the rst quarter of the forthcoming year: Jan Feb March Purchases on account $280,000 $292,000 $330,000 The vendors have required the following terms of payment: Month of purchase 30% First month after the purchase 35% Second month after the purchase 35% Calculate the total payment on account for the month of March. O A. $140,140 0 B. $299,200 0 C. $330,000 0 D. $170,540 The following information is available from previously prepared budgets for the upcoming month: Sales Revenue $500,000 Cost of Goods Sold 390,000 Selling and Administrative Expenses 24,000 Interest Expense 4,000 What is the budgeted operating income for the upcoming month? O A. $82,000 0 B. $110,000 0 C. $86,000 0 D. $106,000 Roberts Company has the following manufacturing overhead budget for the current month: Budgeted units to be produced $22,000 VOH\" cost per unit $50 Budgeted VOH\" 1,100,000 Budgeted FOH" Depreciation 8,500 Rent 20,000 Total budgeted FOH 28,500 Budgeted manufacturing overhead costs $1,128,500 'VOH - Variable Manufacturing Overhead "FOH - Fixed Manufacturing Overhead What would be the budgeted manufacturing overhead costs for the month if Roberts Company expects to increase the budgeted production of units to 27,000 and the variable overhead cost per unit is expected to decrease to $45 per unit? O A. $1,186,500 O B. $1,128,500 O 0. $1,215,000 O D. $1,243,500 Reflector Glass Company prepared the following static budget for the year: Static Budget Units/Volume 5,000 Per Unit Sales Revenue $7 $35,000 Variable Costs 1 5,000 Contribution Margin 30,000 Fixed Costs 3,000 Operating Income/(Loss) $27,000 If a flexible budget is prepared at a volume of 7,600 units, calculate the amount of operating income. The production level is within the relevant range. . . . . . O A. $42,600 O B. $7,600 O C. $3,000 O D. $27,000Hercules Sports Equipment Company projected sales of 78,000 units at a unit sales price of $12 for the year. Actual sales for the year were 75,000 units at $15 per unit. Variable costs were budgeted at $3 per unit, and the actual amount was $4 per unit. Budgeted fixed costs totaled $384,000, while actual fixed costs amounted to $437,000. What is the flexible budget variance for variable costs? O A. $75,000 unfavorable O B. $78,000 unfavorable O C. $78,000 favorable O D. $75,000 favorableOak Valley Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main material is cedar wood, sold by the square foot. The current cost of cedar wood is $4 per square foot from the supplier. Delivery costs are $0.10 per square foot. Carpenters' wages are $20 per hour. Payroll costs are $3.60 per hour, and benefits are $5 per hour. How much is the direct materials standard cost per square foot? O A. $7.70 O B. $4.10 O C. $9.10 O D. $4.00Aquatic Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Aquatic uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 3 pounds per unit; $4 per pound Direct labor: 2 hours per unit; $19 per hour During the first quarter, Aquatic produced 3,000 units of this product. Actual direct materials and direct labor costs were $68,000 and $328,000, respectively. For the purpose of preparing the flexible budget, calculate the total standard direct materials cost at a production volume of 3,000 units. . . . . O A. $68,000 O B. $9,000 O C. $12,000 O D. $36,000Meridian Fashions uses standard costs for their manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the fixed overhead cost variance. Actual fixed overhead $34,000 Budgeted fixed overhead $25,000 Standard overhead allocation rate $7 Standard direct labor hours per unit 4 DLHr Actual output 2,500 units . . . . . O A. $9,000 U O B. $45,000 U O C. $45,000 F O D. $9,000 FFoster Manufacturing uses a standard cost system. Standards for direct materials are as follows: Direct materials (pounds per unit of output) 7 Cost per pound of direct materials $6 The company produced 600 units and actually used 4,700 pounds of direct materials. What is the journal entry to record the materials usage? . . . . . O A. Work - in Process 28,200 Direct Materials Efficiency Variance 3,000 Raw Materials Inventory 31,200 O B. Work - in Process 31,200 Direct Materials Efficiency Variance 3,000 Raw Materials Inventory 28,200 O C. Work - in Process 25,200 Direct Materials Efficiency Variance 3,000 Raw Materials Inventory 28,200 O D. Work - in Process 28,200 Direct Materials Efficiency Variance 3,000 Raw Materials Inventory 25,200Katsu, Inc. has a small car division that operates as a profit center. Below is a partially completed responsibility report for the first quarter. Responsibility Report Flexible Flexible Budget Percentage Actual Budget Variance U/F Variance U/F Sales Revenue $688,200 $700,000 Variable Expenses 309,000 322,000 Contribution Margin 379,200 378,000 Traceable Fixed Expenses 371,000 368,000 Division Margin $8,200 $10,000 Compute the percentage variance for the flexible budget variance for sales revenue. (Round your answer to two decimal places.) . . . . . O A. 1.69% F O B. 1.69% U O C. 4.04% U O D. 4.04% F