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Crocetti Corporation makes one product and has provided the following information to help prepare the master budget for the next three months of operations: $

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Crocetti Corporation makes one product and has provided the following information to help prepare the master budget for the next three months of operations: $ 120 Budgeted selling price per unit Budgeted unit sales (all on credit): January February March 9,000 11,900 7,500 Credit sales are collected: 30% in the month of the sale 70% in the following month The budgeted accounts receivable balance at the end of February is closest to: A. $756,000 B. $630,000 C.$999,600 D. $428,400 The difference between the actual quantity of materials used times actual price paid for materials (AQ X AP) and the actual quantity of materials used times the standard price (AQ X SP) is known as the: A. Materials Spending Variance B. Materials Efficiency Variance C. Materials Quantity Variance D. Materials Price Variance Which of the following budgets are prepared before the Direct Labor Budget? 0 Budgeted Income Statement Production Budget Yes Yes O Budgeted Income Statement Production Budget Yes No Budgeted Income Statement Production Budget No Yes O Budgeted Income Statement Production Budget No Which of the following would result in a favorable variance? A. The actual labor hours worked are more than the standard hours allowed. OB. The quantity of materials used in production is less than the standard quantity allowed. C. The standard labor rate is less than the actual labor rate. D. The actual quantity of materials used in production is more than the standard quantity allowed. Poor quality materials would most likely have an unfavorable effect on which of the following variances? A. Labor Efficiency Variance Materials Price Variance Yes No B. Labor Efficiency Variance Materials Price Variance No No OC. Labor Efficiency Variance Materials Price Variance No Yes OD. Labor Efficiency Variance Materials Price Variance Yes Yes

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