Could i get some help with homework and a quiz in Cost Control & short-term business decisions?

1.) Corn Co incurs a cost of $39 per unit, of which $15 is variable, to make a product that normally sells for $50. A foreign wholesaler offers to buy 5522 units at $22 each. Corn will incur shipping costs of $2 per unit. Compute the increase or decrease in net income Corn will realize by accepting the special order using differential analysis and complete the below table. Should they accept the special order? Round all answers to the nearest whole unit and whole dollar. Enter negative numbers with a minus sign. Enter zeros where appropriate. Accept or Reject the Special Order Reject Accept Differential Revenue Costs Net Income $ $ $ $ $ $ 2.) Jackson Co must decide whether to make or buy some of its components. The variable costs of producing 92000 electrical cords for its floor lamps are $21 per unit. The fixed costs associated with making the cords is $435000. Instead of making the cords, the company has the opportunity to buy the cords at $26 per unit. However, 30% of the fixed costs will remain. Prepare a differential analysis showing whether the company should make or buy the electrical cords. Round all answers to the nearest whole unit and whole dollar. Enter negative numbers with a minus sign. Enter zeros where appropriate. Make or Buy Make Variable Cost Fixed Cost Buy Differential $ $ $ $ Make or Buy Make Buy Differential $ Total Cost $ 3.) Beltway Company is preparing their sales and selling expense budgets for the next quarter (October, November, December). Beltway produces and sells one product. The budgeted sales price for this product is $55 per unit. The company expects to sell 12,000 units in October. They are budgeting a 3% increase in unit sales each month after October. Prepare the sales budget for the quarter (in units and dollars). Round all answers to the nearest whole unit and whole dollar. Beltway Company Sales Budget For October, November, and December Budgeted Budgeted Budgeted Unit Sales Unit Price Sales in Dollars October Novembe r December Total $ $ $ $ $ $ $ 4.) The January 1st inventory of finished units for Ryan and Son's Company is 3,000. During January the company plans to sell 34,000 units and desires a January 31st inventory of 5,000 units. How many units should the company plan on producing in January? units 5.) Halifax, Inc. is trying to prepare their budget for the third quarter. As part of the budget they need to determine the total cash that will be collected from sales for each month. Halifax reports the following budgeted sales information necessary to calculate budgeted cash collections: June Sales July $674,93 $634,790 0 August September $661,06 0 $642,080 35% of the monthly sales listed above are cash sales and are therefore collected right away and 65% of the sales are on account. The amount sold on account each month is collected the following month. Calculate the amount of cash collected in July, August, and September. Round all answers to the nearest whole dollar. July August September Cash Sales Cash collected from sales on account Total Cash Collected 6.) Given the following information, how much direct labor should be budgeted for February? Selected data for the month of February: Planned production 39,000 units Direct labor hours per unit 1.25 hours Direct labor rate $ $12 per hour should be budgeted for direct labor. 7.) Kaiser, Inc. has the following budgeted cash collections from the cash receipts budget and cash payments (excluding loan principal repayments and interest payments) from the cash disbursements budget for the next quarter (April, May, & June). Cash Cash Receipts Payments April May June $34,438 $35,298 $30,842 $31,450 $42,378 $27,551 In addition, Kaiser's beginning cash balance as of April 1 is $15,240. Kaiser, Inc. would like to maintain a minimum $15,000 cash balance at all times. In order to achieve this goal Kaiser has negotiated a line of credit with the bank. If the preliminary cash balance falls below $15,000 Kaiser will borrow the necessary funds to keep their balance above the desired amount. If the preliminary cash balance is above the $15,000 minimum balance they will use any excess to pay down any outstanding loan balance at the time. The interest rate on any outstanding line of credit balance is 6% per year. The interest is paid at the end of each month and is computed on the beginning loan balance for the month. They have a zero balance on their line of credit on April 1st. Prepare the cash budget for the quarter. Enter cash disbursements and loan repayments as a negative number. Round all calculations to the nearest whole dollar. Kaiser, Inc. Cash Budget For April, May, June April Beginning Cash Balance Cash collected May June $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Cash Disbursements Cash payments (given) Interest on bank loan (6%) Preliminary cash balance Additional loan/ or (repayment) Ending cash balance Line of Credit balance April Loan balance at beg. of month Additional money borrowed principal amount repaid Loan balance at end of month 8.) May June $ $ $ $ $ $ $ $ $ $ $ $ Applewood Company is a service based company. They are putting together their budgeted income statement for next year. They project their next year's budget based on prior year's results. Their prior year's income statement follows: Applewood Company Actual Income Statement For Prior Year Sales Expenses: Sales commission expense Rent expense Advertising expense Salaries expense Payroll tax expense Depreciation Total Expenses Income before taxes Income tax expense Net Income/(Loss) 899,500 98,945 22,200 89,669 220,000 24,399 25,000 480,213 419,287 125,786 293,501 Applewood's management also predicts the following information to assist in preparing the budget for the next year. 1. Sales will increase by 8%. 2. Sales Commissions are 11% of sales. 3. Rent expense for next year is $1,850 per month for January - August and will increase to $2,100 on September 1st. 4. Advertising expense is 12% of sales. 5. Salaries are expected to increase by 3%. 6. Payroll tax expense is expected to remain 7.65% of commissions and salaries combined. 7. Depreciation expense is expected to remain unchanged. 8. The income tax rate is 30%. Prepare a budgeted income statement for the next year. Round all calculations to the nearest whole dollar. Applewood Company Budgeted Income Statement For Next Year Sales Expenses: Sales commission expense Rent expense Advertising expense Salaries expense Payroll tax expense Depreciation Total Expenses Income before taxes Income tax expense Net Income/(Loss) QUESTION 1 Many managers prefer a contribution margin income statement for management reporting purposes. True False 2 points QUESTION 2 Differential analysis: A . B . C . compares two courses of action by determining net income for each. would be used to review past performance. is a procedure employing the gross margin to determine the best selling price. D is an analysis of the different costs and benefits from alternative . solutions to a problem. 2 points QUESTION 3 Future costs and revenues that differ between alternatives are relevant to a decision regarding those alternatives. True False 2 points QUESTION 4 Sunk costs are: A . B . C . irrelevant for decision making. past costs. costs such as the previous year's wages. D All of the other answers are . correct. 2 points QUESTION 5 A differential cost: A . B . is the same as a sunk cost. includes past costs. is equal to the difference in relevant costs between two alternatives. D All of the other answers are incorrect. C . . 2 points QUESTION 6 In the contribution margin income statement, contribution margin is equal to net revenues less variable costs of the units sold. True False 2 points QUESTION 7 Joint products should be processed after the split-off point only if the difference in expected selling price at the split-off point and after further processing exceeds the per unit cost of processing after the split-off point. True False 2 points QUESTION 8 The Sidney Company faces a make-or-buy decision concerning a part it manufactures in-house. The product can be manufactured internally with materials costs of $24 per unit, labor of $9, fixed overhead of $6.50, and variable overhead of $6. At what dollar amount would Sidney be indifferent to making or buying this part if the fixed overhead costs would be unaffected? A . $24. 00 B $43. . 50 C $33. . 00 D $39. . 00 2 points QUESTION 9 A company normally will not add a product with a negative contribution margin. True False 2 points QUESTION 10 Which of the following is true of the contribution margin income statement? Selling costs are never included in the calculation of contribution margin. B The contribution margin is the amount that is available to cover fixed . costs. C Both fixed and variable manufacturing costs are deducted to calculate . contribution margin. D All of the other answers are incorrect. A . . 2 points QUESTION 11 When differential analysis is applied to pricing decisions, the price selected should be the price that will result in the greatest TOTAL contribution margin. True False 2 points QUESTION 12 When deciding to make or buy a product, the only relevant costs are differential costs. True False 2 points QUESTION 13 The Mondale Company produces 20,000 units per year of a part that it needs for its final product. The total cost per unit of making this part is $30. Included in this cost are direct materials, $15; direct labor, $9; and manufacturing overhead (variable), $3. Similar parts are available on the market at prices ranging from $25 to $31. Assuming a sufficient supply of a part of similar quality, what is the maximum price Mondale should pay to buy the part rather than make it? A . B . $2 6 $2 8 $2 7 D $3 . 0 C . 2 points QUESTION 14 Discretionary fixed costs are subject to management control from year to year. True False 2 points QUESTION 15 Joint costs are: A . B . C . D . costs incurred after the point where joint products split off from each other. sunk costs in deciding whether to process a joint product further. Two of the other answers are correct. All of the other answers are incorrect. 2 points QUESTION 16 The projected income statement is typically: A . B . not prepared. prepared after the projected balance sheet. C prepared prior to the projected . balance sheet. D All of the other answers are . incorrect. 2 points QUESTION 17 The use of the master budget allows management to appraise new policies before they are put into effect. True False 2 points QUESTION 18 Periodic budget reports generally compare actual data with budgeted data. True False 2 points QUESTION 19 Zero-based budgeting requires that managers start budgeting at point zero. True False 2 points QUESTION 20 A series of budgets for differing levels of activity for the same item is called a(n): operating budget. B flexible . budget. C master . budget. D financial . budget. A . 2 points QUESTION 21 Zero-based budgeting requires that managers start budgeting at point zero and: A . B . C . D . budget only for changes from the past period's budget. justify every dollar that will appear in the budget. budget only for major items of expense. All of the other answers are incorrect. 2 points QUESTION 22 Budgets are used in performance evaluation. True False 2 points QUESTION 23 The more uncertain the future, the less the desirability of budgeting. True False 2 points QUESTION 24 The cornerstone of the budgeting process is the sales budget because: A . B . C . D . all other budgets flow from the determination of future sales units and dollars. it is the most complex. information about future sales is the most readily available. the sales force must gather their budget's data from their customers. 2 points QUESTION 25 Financial budgets do not aid management in planning. True False 2 points QUESTION 26 A budget shows how management expects to acquire and use resources to achieve its objectives. True False 2 points QUESTION 27 The master budget: A . B . is prepared as the first step in developing the planned operating budget and the financial budget. is the organization's five-year plan for financing and investing activities. C . D . is initiated by first developing the cash budget. consists of a projected income statement and a projected balance sheet, with supporting budgets and schedules. 2 points QUESTION 28 Which of the following would be a factor to be considered in formulating a sales budget? A . B . C . D . Economic indicators The demand for the product Level of advertising All of the other answers are correct. 2 points QUESTION 29 The projected income statement is prepared after the projected balance sheet. True False 2 points QUESTION 30 The Schraeger Company has estimated that sales for next quarter would be 30,000 units. The company has a beginning finished goods inventory of 2,000 units and wishes to have finished goods inventory of 5,000 units at the end of the quarter. How many units must the company produce in order to have its desired ending inventory? 30,000 units B 37,000 . units C 33,000 . units D 27,000 . units A