Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please give me answers to questions on an attached file. Question 1 1. Mikhail Corporation has the following sales forecasts for the first three months

image text in transcribed

Please give me answers to questions on an attached file.image text in transcribed

Question 1 1. Mikhail Corporation has the following sales forecasts for the first three months of 2014: Month January February March Sales $36,000 24,000 40,000 Sixty-five percent of sales are collected in the month of the sale and the remainder are collected in the following month. Accounts receivable balance (January 1, 2014) Cash balance (January 1, 2014) $16,000 12,000 Minimum cash balance is $20,000. Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges). How much cash would be collected in March from sales? Answer a. $48,000 b. $32,000 c. $58,400 d. $34,400 2 points Question 2 1. Walterboro, Inc., has done a cost analysis for its production of decals. The following activities and cost drivers have been developed: Activity Maintenance Machining Setups Purchasing Cost Formula $11,000 + $0.11 per machine hour $25,000 + $0.50 per machine hour $50 per batch $200 + $45 per purchase order Following are the actual costs of producing 85,000 decals: 5,000 machine hours; 10 batches; 20 purchase orders Maintenance Machining Setups Purchasing $11,500 28,300 550 1,000 What is the budget variance for machining in an activity-based performance report? Answer a. $50 F b. $50 U c. $800 U d. $800 F 2 points Question 3 1. Dali, Inc. is constructing its marketing budget. Sales Production 1st quarter 30,000 35,000 2nd quarter 40,000 45,000 3rd quarter 50,000 55,000 4th quarter 60,000 65,000 Commissions are $3 per unit sold. Salesperson salaries are $100,000 per quarter. Depreciation is $25,000 per quarter. Travel is $10,000 per quarter. Advertising is $50,000 in the first quarter; $40,000 in the second quarter; $60,000 in the third quarter; and $55,000 in the fourth quarter. What is the budgeted marketing expense for the third quarter? Answer a. $735,000 b. $795,000 c. $345,000 d. $360,000 2 points Question 4 1. Figure 8-3 Roaming Vehicles Company manufactures buggies. Manufacturing a buggy takes 20 units of wood and 1 unit of steel. Scheduled production of buggies for the next two months is 500 and 600 units, respectively. Beginning inventory is 4,000 units of wood and 30 units of steel. The ending inventory of wood is planned to decrease 500 units in each of the next two months, and the steel inventory is expected to increase 5 units in each of the next two months. Refer to Figure 8-3. How many units of wood are expected to be used in production during the second month? Answer a. 12,500 units b. 10,000 units c. 12,000 units d. 15,000 units 2 points Question 5 1. Silver Faces, Inc., has done a cost analysis for its production of reflectors. The following activities and cost drivers have been developed: Activity Maintenance Machining Inspection Setups Purchasing Cost Formula $15,000 + $4 per machine hour $35,000 + $1 per machine hour $60,000 + $750 per batch $1,000 per batch $50,000 + $10 per purchase order What is the total cost for production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000 purchase orders? Answer a. $393,750 b. $933,410 c. $3,937,500 d. $38,410,000 2 points Question 6 1. The budgeted income statement depends partly on information in the budgets in the master budget. Answer True False 2 points Question 7 1. Figure 8-8 Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below: Rammazzotti Inc., had the following budgeted data: Unit sales for 2014 Unit production for 2014 26,000 26,000 Budgeted fixed overhead for 2014: Supervision Depreciation Rent $ 800 2,000 100 Budgeted variable costs per unit: Direct materials Direct labor Supplies Indirect labor Power $0.15 0.20 0.02 0.05 0.02 The following actually occurred: Actual unit sales for 2014 Actual unit production for 2014 24,000 28,000 Actual fixed overhead for 2014: Supervision Depreciation Rent $ 850 2,000 100 Actual variable costs: Direct materials Direct labor Supplies Indirect labor Power $3,500 4,900 530 1,250 470 Refer to Figure 8-8. The flexible budget variance for total cost for 2014 is Answer a. $1,620 F. b. $90 F. c. $140 F. d. $50 F. 2 points Question 8 1. Figure 8-1 Armando Company produces and sells mattresses. It expects to sell 10,000 mattresses in the year 2015 and had 1,000 mattresses in finished goods inventory at the end of 2014. Armando would like to complete operations in the year 2015 with at least 1,250 completed mattresses in inventory. There is no ending work-in-process inventory. The mattresses sell for $300 each. Refer to Figure 8-1. What would be the total sales for the year 2015? Answer a. $3,375,000 b. $3,000,000 c. $3,675,000 d. $3,300,000 2 points Question 9 1. Moriah Manufacturing Company expects to incur the following per unit costs for 1,000 units of production: Direct materials Direct labor Variable overhead Fixed overhead 3 lb. @ $5 = $15 1 hr @ $6 = $6 75% of direct labor costs 50% of direct labor costs What is the total amount of overhead included in the overhead budget? Answer a. $11,250 b. $3,000 c. $4,500 d. $7,500 2 points Question 10 1. Refer to Figure 8-3. What is the number of units of wood that need to be purchased by Roaming Vehicles Company during the first month? Answer a. 10,000 units b. 1,000 units c. 9,500 units d. 500 units 2 points Question 11 1. Figure 8-1 Armando Company produces and sells mattresses. It expects to sell 10,000 mattresses in the year 2015 and had 1,000 mattresses in finished goods inventory at the end of 2014. Armando would like to complete operations in the year 2015 with at least 1,250 completed mattresses in inventory. There is no ending work-in-process inventory. The mattresses sell for $300 each. Refer to Figure 8-1. How many mattresses would be produced in the year 2015? Answer a. 11,250 mattresses b. 11,000 mattresses c. 10,250 mattresses d. 10,000 mattresses 2 points Question 12 1. The cash excess or deficiency section of the cash budget compares expected available cash to the expected cash needed. Answer True False 2 points Question 13 1. Colorado Corporation has the following sales forecast for the next quarter: July, 4,000 units; August, 4,800 units; September, 5,600 units Sales totaled 3,200 units in June. The June ending finished goods inventory was 800 units. End-of-month finished goods inventory levels are planned to be equal to 30 percent of the next month's planned sales. Records showed that each unit is budgeted at 2 pounds of materials costing $3 per pound. Direct labor was budgeted at .5 direct labor hours per unit at a wage of $20 per hour. Budgeted variable overhead is $1.50 per direct labor hour. Fixed overhead is budgeted at $250,000 for the year, and 50,000 units are expected to be produced. After preparing a finished goods inventory budget for August, what is the total ending inventory cost? Answer a. $69,600 b. $31,755 c. $26,100 d. $36,540 2 points Question 14 1. Feedback is not important to managers as a measuring tool of their performance. Answer True False 2 points Question 15 1. The first section of the master budget is the financial budget. Answer True False 2 points Question 16 1. Refer to Figure 8-3. How many units of steel are expected in the material inventory at the end of the second month? Answer a. 30 units b. 45 units c. 35 units d. 40 units 2 points Question 17 1. Walterboro, Inc., has done a cost analysis for its production of decals. The following activities and cost drivers have been developed: Activity Maintenance Machining Setups Purchasing Cost Formula $11,000 + $0.11 per machine hour $25,000 + $0.50 per machine hour $50 per batch $200 + $45 per purchase order Following are the actual costs of producing 85,000 decals: 5,000 machine hours; 10 batches; 20 purchase orders Maintenance Machining Setups Purchasing $11,500 28,300 550 1,000 What is the budgeted cost per decal? (Round to three decimal places.) Answer a. $0.478 b. $0.468 c. $0.486 d. $0.487 2 points Question 18 1. Colorado Corporation has the following sales forecast for the next quarter: July, 4,000 units; August, 4,800 units; September, 5,600 units Sales totaled 3,200 units in June. The June ending finished goods inventory was 800 units. End-of-month finished goods inventory levels are planned to be equal to 30 percent of the next month's planned sales. Records showed that each unit is budgeted at 2 pounds of materials costing $3 per pound. Direct labor was budgeted at .5 direct labor hours per unit at a wage of $20 per hour. Budgeted variable overhead is $1.50 per direct labor hour. Fixed overhead is budgeted at $250,000 for the year, and 50,000 units are expected to be produced. The beginning finished inventory is valued at $31,320. After preparing a finished goods inventory budget for August, what is the cost of goods sold for August? Answer a. $104,400 b. $67,860 c. $109,620 d. $140,940 2 points Question 19 1. Static budgets show costs for varying levels of activities. Answer True False 2 points Question 20 1. Figure 8-8 Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below: Rammazzotti Inc., had the following budgeted data: Unit sales for 2014 Unit production for 2014 26,000 26,000 Budgeted fixed overhead for 2014: Supervision Depreciation Rent $ 800 2,000 100 Budgeted variable costs per unit: Direct materials Direct labor Supplies Indirect labor Power $0.15 0.20 0.02 0.05 0.02 The following actually occurred: Actual unit sales for 2014 Actual unit production for 2014 24,000 28,000 Actual fixed overhead for 2014: Supervision Depreciation Rent $ 850 2,000 100 Actual variable costs: Direct materials Direct labor Supplies Indirect labor Power $3,500 4,900 530 1,250 470 Refer to Figure 8-8. The flexible budget variance for supervision for 2014 is Answer a. $67 F. b. $67 U. c. $50 F. d. none of these. http://www.coursehero.com/file/7568136/Chapter-8-Test-Bank/

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introductory Financial Accounting for Business

Authors: Thomas Edmonds, Christopher Edmonds

1st edition

1260299449, 978-1260299441

More Books

Students also viewed these Accounting questions

Question

1. What does this mean for me?

Answered: 1 week ago