I noticed the following questions have already been asked, you can prob use the existing questions and answers and send them to me. Would that work? 1. (Points: 1) The cash budget must be prepared before you can complete the: a. production budget. b. budgeted balance sheet. c. raw materials purchases budget. d. schedule of cash disbursements. Save Answer 2. (Points: 1) Which of the following is not a benefit of budgeting? a. It uncovers potential bottlenecks before they occur. b. It coordinates the activities of the entire organization by integrating the plans and objectives of the various parts. c. It ensures that accounting records comply with generally accepted accounting principles. d. It provides benchmarks for evaluating subsequent performance. Save Answer 3. (Points: 1) The master budget process usually begins with the: a. production budget. b. operating budget. c. sales budget. d. cash budget. Save Answer 4. (Points: 1) A method of budgeting in which the cost of each program must be justified every year is called: a. operational budgeting. b. zero-based budgeting. c. continuous budgeting. d. responsibility accounting. Save Answer 5. (Points: 1) Fairmont Inc. uses an accounting system that charges costs to the manager who has been delegated the authority to make decisions concerning the costs. For example, if the sales manager accepts a rush order that will result in higher than normal manufacturing costs, these additional costs are charged to the sales manager because the authority to accept or decline the rush order was given to the sales manager. This type of accounting system is known as: a. responsibility accounting. b. contribution accounting. c. absorption accounting. d. operational budgeting. Save Answer 6. (Points: 1) Budgeted sales in Allen Company over the next four months are given below: September October November December Budgeted sales $100,000 $160,000 $180,000 $120,000 Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second month following sale. The remainder are uncollectible. Given these data, cash collections for December should be: a. $153,000. b. $138,000. c. $120,000. d. $103,500. Save Answer 7. (Points: 1) The PDQ Company makes collections on credit sales according to the following schedule: 25% in month of sale 70% in month following sale 4% in second month following sale 1% uncollectible The following sales have been budgeted: Month Sales April $100,000 May 120,000 June 110,000 Cash collections in June would be: a. $113,400. b. $110,000. c. $111,000. d. $115,500. Save Answer 8. (Points: 1) Pardee Company plans to sell 12,000 units during the month of August. If the company has 2,500 units on hand at the start of the month, and plans to have 2,000 units on hand at the end of the month, how many units must be produced during the month? a. 11,500. b. 12,500. c. 12,000. d. 14,000. Save Answer 9. (Points: 1) Superior Industries' sales budget shows quarterly sales for the next year as follows: Quarter Sales (units) First 10,000 Second 8,000 Third 12,000 Fourth 14,000 Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales. Budgeted production for the second quarter should be: a. 7,200 units. b. 8,000 units. c. 8,800 units. d. 8,400 units. Save Answer 10. (Points: 1) The Willsey Merchandise Company has budgeted $40,000 in sales for the month of December. The company's cost of goods sold is 30% of sales. If the company has budgeted to purchase $18,000 in merchandise during December, then the budgeted change in inventory levels over the month of December is: a. $6,000 increase. b. $10,000 decrease. c. $22,000 decrease. d. $15,000 increase. Save Answer 11. (Points: 1) ABC Company has a cash balance of $9,000 on April 1. The company must maintain a minimum cash balance of $6,000. During April expected cash receipts are $45,000. Expected cash disbursements during the month total $52,000. During April the company will need to borrow: a. $2,000. b. $4,000. c. $6,000. d. $8,000. Save Answer 12. (Points: 1) Avril Company makes collections on sales according to the following schedule: 30% in the month of sale 60% in the month following sale 8% in the second month following sale The following sales are expected: Expected Sales January $100,000 February 120,000 March 110,000 Cash collections in March should be budgeted to be: a. $110,000. b. $110,800. c. $105,000. d. $113,000. Save Answer 13. (Points: 1) The Stacy Company makes and sells a single product, Product R. Budgeted sales for April are $300,000. Gross Margin is budgeted at 30% of sales dollars. If the net income for April is budgeted at $40,000, the budgeted selling and administrative expenses are: a. $133,333. b. $50,000. c. $102,000. d. $78,000. Save Answer 14. (Points: 1) Use the following to answer questions 14-15: KAB Inc., a small retail store, had the following results for May. The budgets for June and July are also given. May June July (actual) (budget) (budget) Sales $42,000 $40,000 $45,000 Cost of sales 21,000 20,000 22,500 Gross margin 21,000 20,000 22,500 Operating expenses 20,000 20,000 20,000 Operating income $ 1,000 $ 0 $ 2,500 Sales are collected 80% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the sale. The "operating expenses" are paid in the month of the sale. The amount of cash collected during the month of June should be: a. $32,000. b. $40,000. c. $40,400. d. $41,000. Save Answer 15. (Points: 1) The cash disbursements during the month of June for goods purchased for resale and for operating expenses should be: a. $40,000. b. $41,000. c. $42,500. d. $43,500. Save Answer 16. (Points: 1) Use the following to answer questions 16-20: Justin's Plant Store, a retailer, started operations on January 1. On that date, the only assets were $16,000 in cash and $3,500 in merchandise inventory. For purposes of budget preparation, assume that the company's cost of goods sold is 60% of sales. Expected sales for the first four months appear below. Expected Sales January $10,000 February 24,000 March 16,000 April 25,000 The company desires that the merchandise inventory on hand at the end of each month be equal to 50% of the next month's merchandise sales (stated at cost). All purchases of merchandise inventory must be paid in the month of purchase. Sixty percent of all sales should be for cash; the balance will be on credit. Seventy-five percent of the credit sales should be collected in the month following the month of sale, with the balance collected in the following month. Variable operating expenses should be 10% of sales and fixed expenses (all depreciation) should be $3,000 per month. Cash payments for the variable operating expenses are made during the month the expenses are incurred. In a budgeted income statement for the month of February, net income would be: a. $9,000. b. $1,800. c. $0. d. $4,200. Save Answer 17. (Points: 1) In a budgeted balance sheet, the Merchandise Inventory on February 28 would be: a. $4,800. b. $7,500. c. $9,600. d. $3,200. Save Answer 18. (Points: 1) The Accounts Receivable balance that would appear in the March 31 budgeted balance sheet would be: a. $15,000. b. $16,000. c. $8,800. d. $12,400. Save Answer 19. (Points: 1) In a budget of cash receipts for March, the total cash receipts would be: a. $17,800. b. $8,200. c. $20,200. d. $16,000. Save Answer 20. (Points: 1) In a budget of cash disbursements for March, the total cash disbursements would be: a. $11,200. b. $13,900. c. $22,300. d. $16,900. Save Answer 21. (Points: 1) Use the following to answer questions 21-24: Information on the actual sales and inventory purchases of the Law Company for the first quarter follow: Inventory Sales Purchases January $120,000 $60,000 February $100,000 $78,000 March $130,000 $90,000 Collections from Law Company's customers are normally 60% in the month of sale, 30% in the month following sale, and 8% in the second month following sale. The balance is uncollectible. Law Company takes full advantage of the 3% discount allowed on purchases paid for by the end of the following month. The company expects sales in April of $150,000 and inventory purchases of $100,000. Operating expenses for the month of April are expected to be $38,000, of which $15,000 is salaries and $8,000 is depreciation. The remaining operating expenses are variable with respect to the amount of sales in dollars. Those operating expenses requiring a cash outlay are paid for during the month incurred. Law Company's cash balance on March 1 was $43,000, and on April 1 was $35,000. The expected cash collections from customers during April would be: a. $150,000. b. $137,000. c. $139,000. d. $117,600. Save Answer 22. (Points: 1) The expected cash disbursements during April for inventory purchases would be: a. $100,000. b. $97,000. c. $90,000. d. $87,300. Save Answer 23. (Points: 1) The expected cash disbursements during April for operating expenses would be: a. $38,000. b. $30,000. c. $23,000. d. $15,000. Save Answer 24. (Points: 1) The expected cash balance on April 30 would be: a. $54,700. b. $62,700. c. $19,700. d. $28,700. Save Answer 25. (Points: 1) Which department is usually held responsible for an unfavorable materials quantity variance? a. Marketing b. Purchasing c. Engineering d. Production Save Answer 26. (Points: 1) Which of the following is the most probable reason a company would experience an unfavorable labor rate variance and a favorable labor efficiency variance? a. The mix of workers assigned to the particular job was heavily weighted towards the use of higher paid, experienced individuals. b. The mix of workers assigned to the particular job was heavily weighted towards the use of new relatively low paid, unskilled workers. c. Because of the production schedule, workers from other production areas were assigned to assist this particular process. d. Defective materials caused more labor to be used in order to produce a standard unit. Save Answer 27. (Points: 1) If the actual labor hours worked exceed the standard labor hours allowed, what type of variance will occur? a. Favorable labor efficiency variance. b. Favorable labor rate variance. c. Unfavorable labor efficiency variance. d. Unfavorable labor rate variance. Save Answer 28. (Points: 1) (Appendix) What does a credit balance in a direct labor efficiency variance account indicate? a. the average wage rate paid to direct labor employees was less than the standard rate. b. the standard hours allowed for the units produced were greater than actual direct labor hours used. c. actual total direct labor costs incurred were less than standard direct labor costs allowed for the units produced. d. the number of units produced was less than the number of units budgeted for the period. Save Answer 29. (Points: 1) A favorable labor rate variance indicates that a. actual hours exceed standard hours. b. standard hours exceed actual hours. c. the actual rate exceeds the standard rate. d. the standard rate exceeds the actual rate. Save Answer 30. (Points: 1) An unfavorable labor efficiency variance indicates that: a. The actual labor rate was higher than the standard labor rate. b. The labor rate variance must also be unfavorable. c. Actual labor hours worked exceeded standard labor hours for the production level achieved. d. Overtime labor was used during the period. Save Answer 31. (Points: 1) If a company follows a practice of isolating variances at the earliest point in time, what would be the appropriate time to isolate and recognize a direct material price variance? a. When material is issued. b. When material is purchased. c. When material is used in production. d. When production is completed. Save Answer 32. (Points: 1) A favorable material price variance coupled with an unfavorable material usage variance would MOST likely result from: a. problems with processing machines. b. the purchase of low quality materials. c. problems with labor efficiency. d. changes in the product mix. Save Answer 33. (Points: 1) Tower Company planned to produce 3,000 units of its single product, Titactium, during November. The standards for one unit of Titactium specify six pounds of materials at $0.30 per pound. Actual production in November was 3,100 units of Titactium. There was a favorable materials price variance of $380 and an unfavorable materials quantity variance of $120. Based on these variances, one could conclude that: a. more materials were purchased than were used. b. more materials were used than were purchased. c. the actual cost per pound for materials was less than the standard cost per pound. d. the actual usage of materials was less than the standard allowed. Save Answer 34. (Points: 1) A labor efficiency variance resulting from the use of poor quality materials should be charged to: a. the production manager. b. the purchasing agent. c. manufacturing overhead. d. the engineering department. Save Answer 35. (Points: 1) Throughput time consists of: a. Process time. b. Inspection time and move time. c. Process time, inspection time, and move time. d. Process time, inspection time, move time, and queue time. Save Answer 36. (Points: 1) Manufacturing Cycle Efficiency (MCE) is computed as: a. Throughput Time Delivery Cycle Time b. Process Time Delivery Cycle Time c. Value-Added Time Throughput Time d. Value-Added Time Delivery-Cycle Time Save Answer 37. (Points: 1) (Appendix) Drake Company purchased materials on account. The entry to record the purchase of materials having a standard cost of $1.50 per pound from a supplier at $1.60 per pound would include a: a. credit to Raw Materials Inventory. b. debit to Work in Process. c. credit to Materials Price Variance. d. debit to Materials Price Variance. Save Answer 38. (Points: 1) (Appendix) Which of the following entries would correctly record the charging of direct labor costs to Work in Process given an unfavorable labor efficiency variance and a favorable labor rate variance? a. Work in Process Labor Efficiency Variance Labor Rate Variance Wages Payable b. Work in Process Wages Payable c. Work in Process Labor Efficiency Variance Labor Rate Variance Wages Payable d. Work in Process Labor Rate Variance Labor Efficiency Variance Wages Payable Save Answer 39. (Points: 1) Under a standard cost system, the material price variances are usually the responsibility of the: a. production manager. b. sales manager. c. purchasing manager. d. engineering manager. Save Answer 40. (Points: 1) The terms "standard quantity allowed" or "standard hours allowed" mean: a. the actual output in units multiplied by the standard output allowed. b. the actual input in units multiplied by the standard output allowed. c. the actual output in units multiplied by the standard input allowed. d. the standard output in units multiplied by the standard input allowed. Save Answer 41. (Points: 1) Dahl Company, a clothing manufacturer, uses a standard costing system. Each unit of a finished product contains 2 yards of cloth. However, there is unavoidable waste of 20%, calculated on input quantities, when the cloth is cut for assembly. The cost of the cloth is $3 per yard. The standard direct material cost for cloth per unit of finished product is: a. $4.80. b. $6.00. c. $7.00. d. $7.50. Save Answer 42. (Points: 1) Cox Company's direct material costs for the month of January were as follows: Actual quantity purchased 18,000 kilograms Actual unit purchase price $ 3.60 per kilogram Materials price variance-- unfavorable (based on purchases) $ 3,600 Standard quantity allowed for actual production 16,000 kilograms Actual quantity used 15,000 kilograms For January there was a favorable direct material quantity variance of: a. $3,360. b. $3,375. c. $3,400. d. $3,800. Save Answer 43. (Points: 1) The Porter Company has a standard cost system. In July the company purchased and used 22,500 pounds of direct material at an actual cost of $53,000; the materials quantity variance was $1,875 Unfavorable; and the standard quantity of materials allowed for July production was 21,750 pounds. The materials price variance for July was: a. $2,725 F. b. $2,725 U. c. $3,250 F. d. $3,250 U. Save Answer 44. (Points: 1) Information on Fleming Company's direct material costs follows: Actual amount of direct materials used 20,000 pounds Actual direct material costs $40,000 Standard price of direct materials $2.10 per pound Direct material efficiency variance--favorable $3,000 What was the company's direct material price variance? a. $1,000 favorable. b. $1,000 unfavorable. c. $2,000 favorable. d. $2,000 unfavorable. Save Answer 45. (Points: 1) During March, Younger Company's direct material costs for product T were as follows: Actual unit purchase price $6.50 per meter Standard quantity allowed for actual production 2,100 meters Quantity purchased and used for actual production 2,300 meters Standard unit price $6.25 per meter Younger's material quantity variance for March was: a. $1,250 unfavorable. b. $1,250 favorable. c. $1,300 unfavorable. d. $1,300 favorable. Save Answer 46. (Points: 1) Yola Company manufactures a product with standards for direct labor of 4 direct labor-hours per unit at a cost of $12.00 per direct labor-hour. During June, 1,000 units were produced using 4,100 hours at $12.20 per hour. The direct labor efficiency variance was: a. $1,200 favorable. b. $1,200 unfavorable. c. $2,020 favorable. d. $2,020 unfavorable. Save Answer 47. (Points: 1) The following labor standards have been established for a particular product: Standard labor hours per unit of output 8.3 hours Standard labor rate $12.10 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 6,100 hours Actual total labor cost $71,370 Actual output 900 units What is the labor efficiency variance for the month? a. $19,017 F b. $19,017 U c. $16,029 F d. $16,577 F Save Answer 48. (Points: 1) Lab Corp. uses a standard cost system. Direct labor information for Product CER for the month of October follows: Standard direct labor rate $6.00 per hour Actual direct labor rate paid $6.10 per hour Standard hours allowed for actual production 1,500 hours Labor efficiency variance--unfavorable $600 What are the actual hours worked? a. 1,400. b. 1,402. c. 1,598. d. 1,600. Save Answer 49. (Points: 1) The Reedy Company uses a standard costing system. The following data are available for November: Actual direct labor hours worked 5,800 hours Standard direct labor rate $9 per hour Labor rate variance $1,160 favorable The actual direct labor rate for November is: a. $8.80. b. $8.90. c. $9.00 d. $9.20. Save Answer 50. (Points: 1) For the month of April, Thorp Co.'s records disclosed the following data relating to direct labor: Actual cost $10,000 Rate variance $ 1,000 favorable Efficiency variance $ 1,500 unfavorable For the month of April, actual direct labor hours amounted to 2,000. In April, Thorp's standard direct labor rate per hour was: a. $5.50. b. $5.00. c. $4.75. d. $4.50. Save Answer 51. (Points: 1) The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 7.8 hours Standard variable overhead rate $12.55 per hour The following data pertain to operations for the last month: Actual hours 2,900 hours Actual total variable overhead cost $36,975 Actual output 200 units What is the variable overhead efficiency variance for the month? a. $17,397 U b. $16,817 U c. $312 F d. $17,085 U Save Answer 52. (Points: 1) The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 5.6 hours Standard variable overhead rate $12.00 per hour The following data pertain to operations for the last month: Actual hours 2,600 hours Actual total variable overhead cost $31,330 Actual output 400 units What is the variable overhead spending variance for the month? a. $112 F b. $130 U c. $4,450 U d. $4,338 U Save Answer 53. (Points: 1) Use the following to answer questions 53-56: Appendix) The Dexon Company makes and sells a single product called a Mip and employs a standard costing system. The following standards have been established for one unit of Mip: Standard Quantity or Hours Standard Cost per Mip Direct materials 6 board feet $9.00 Direct labor 0.8 hours $9.60 There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board feet at the total cost of $24,000. Used 12,000 board feet to produce 2,100 Mips. Used 1,700 hours of direct labor time at a total cost of $20,060. To record the purchase of direct materials, the general ledger would include what entry to the Materials Price Variance Account? a. $1,500 credit b. $1,500 debit c. $6,000 credit d. $6,000 debit Save Answer 54. (Points: 1) To record the use of direct materials in production, the general ledger would include what entry to the Materials Quantity Variance account? a. $3,600 debit b. $3,600 credit. c. $900 debit d. $900 credit Save Answer 55. (Points: 1) To record the incurrence of direct labor cost and its use in production, the general ledger would include what entry to the Labor Rate Variance account? a. $240 credit b. $240 debit c. $340 debit d. $340 credit Save Answer 56. (Points: 1) To record the incurrence of direct labor costs and its use in production, the general ledger would include what entry to the Labor Efficiency Variance account? a. $480 credit b. $240 debit c. $1,200 debit d. $1,200 credit Save Answer 57. (Points: 1) A major weakness of flexible budgets is that: a. they are geared only to a single level of activity. b. they give subordinates too much flexibility. c. they force the manager to compare actual costs at one level of activity to budgeted costs at a different level of activity. d. none of these. Save Answer 58. (Points: 1) Lanta Restaurant compares monthly operating results with a static budget prepared at the beginning of the year. When actual sales are less than budget, would the restaurant usually report favorable variances on variable food costs and fixed supervisory salaries? Food Costs Supervisory Salaries Yes Yes Yes No No Yes No No a. Yes Yes b. Yes No c. No Yes d. No No Save Answer 59. (Points: 1) Overhead cost is applied to units based on direct labor hours. For April, total overhead cost was budgeted at $80,000 based on a denominator activity level of 20,000 direct labor hours for the month. The standard cost card indicates that each unit of finished product requires 2 direct labor-hours. The following data are available for April's activity: Number of units produced 9,500 Direct labor hours worked 19,500 Actual total overhead cost incurred $79,500 What amount of total overhead cost would have been applied to production for the month of April? a. $76,000. b. $78,000. c. $79,500. d. $80,000. Save Answer 60. (Points: 1) Hart Company's labor standards call for 500 direct labor hours to produce 250 units of product. During October the company worked 625 direct labor hours and produced 300 units. The standard hours allowed for October would be: a. 625 hours. b. 500 hours. c. 600 hours. d. 250 hours. Save Answer 61. (Points: 1) The Adlake Company makes and sells a single product and uses a standard cost system. During October, the company budgeted $300,000 in manufacturing overhead cost at a denominator activity of 20,000 machine-hours. At standard, each unit of finished product requires 5 machine-hours. The following cost and activity were recorded during October: Total actual manufacturing overhead cost incurred $294,000 Units of product completed 3,800 Actual machine-hours worked 19,422 The amount of overhead cost that the company applied to work in process for October was: a. $279,300. b. $291,330. c. $294,000. d. $285,000. Save Answer 62. (Points: 1) Union Company uses a standard cost accounting system. The following overhead costs and production data are available for August: Standard fixed overhead rate $1.00 per hour Standard variable overhead rate $4.00 per hour Denominator activity 40,000 hours Actual hours 39,500 hours Standard hours allowed for output 39,000 hours Overapplied overhead $2,000 The total amount of overhead applied to work in process for August would be: a. $195,000. b. $197,000. c. $197,500. d. $199,500. Save Answer 63. (Points: 1) Use the following to answer questions 63-66: The Alpha Company produces toys for national distribution. Standards for a particular toy are: Materials: 12 ounces per unit at 56 per ounce. Labor: 2 hours per unit at $2.75 per hour. During the month of December, the company produced 1,000 units. Information for the month follows: Materials: 14,000 ounces were purchased and used at a total cost of $7,140. Labor: 2,500 hours worked at a total cost of $8,000. The materials price variance is: a. $700 U. b. $420 U. c. $420 F. d. $700 F. Save Answer 64. (Points: 1) The materials quantity variance is: a. $1,120 U. b. $1,820 F. c. $1,820 U. d. $1,120 F. Save Answer 65. (Points: 1) The labor rate variance is: a. $2,500 F. b. $1,125 F. c. $1,125 U. d. $2,500 U. Save Answer 66. (Points: 1) The labor efficiency variance is: a. $1,600 U. b. $1,375 U. c. $1,375 F. d. $1,600 F. Save Answer 67. (Points: 1) Use the following to answer questions 67-70: The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow: Labor rate variance: $ 7,000 F Labor efficiency variance: $12,000 F Variable overhead efficiency variance: $ 4,000 F Number of units produced: 10,000 Standard labor rate per direct labor hour: $ 12 Standard variable overhead rate per direct labor hour: $ 4 Actual labor hours used: 14,000 Actual variable manufacturing overhead costs: $58,290 The standard hours allowed to make one unit of finished product are: a. 1.0. b. 1.2. c. 1.5. d. 2.0. Save Answer 68. (Points: 1) The total standard cost for variable overhead for May was: a. $56,000. b. $40,000. c. $60,000. d. $50,000. Save Answer 69. (Points: 1) The total standard cost for direct labor for May was: a. $168,000. b. $180,000. c. $120,000. d. $161,000. Save Answer 70. (Points: 1) The actual direct labor rate for May in dollars per hour was: a. $12.50. b. $12.00. c. $11.75. d. $11.50. Save