Question 36 (2 points) ABC Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: What was the variable overhead rate efficiency variance for the month? 1,980F$1,260U$720U$1,220U Question 37 (2 points) ABC Manufacturing Corporation's most recent production budget indicates the following required production: Each unit of finished product requires 3 feet of raw materials. The company maintains raw materials inventory equal to 10% of the next month's expected production needs. The raw material used in ABC Manufacturing Corporation's product costs $2.00 per foot. What is the value of raw material that ABC Manufacturing should plan on purchasing for the manth of February? $39,600$35,700$17,850$36,000 Budgeted ending inventory needs which of the following budgets: cash disbursements budget selling \& administrative cost budget manufacturing overhead budget cash receipts budget Question 39 (2 points) The plant manager has the production budget, and creates a preliminary budget for direct materials. What additional information is needed to determine the direct materials budget? Budgeted Sales per month Budgeted inventory of finished goods on hand at the beginning of each month. Budgeted cash disbursements per month Company policy for the desired inventory of plastic pelle=ts at the beginning of each month Question 40 (2 points) Smith Well Servicing Company had its accountant gather the following information at the end of the period. What is the Spending Variance for "Servicing Materials"? $600F $800F $600U Smith Well Servicing Company had its accountant gather the following information at the end of the period. What is the Total Variance for "Employee wages \& salaries"? $1800F$1000F$1000U$1800U Question 42 (2 points) 1. A self-imposed ar participative budget is used in arder to Prevent unrealistic budgets imposed by top managements Prevent budgets that generate undeserved bonuses. Set budgets with a lot of slack to ensure the budget will be met. Set budgets that reflect the most ideal circurnstances possible Question 43 (2 points) An ideal budget Should not be used when bonuses are based on budgets Is used by most companies May increase the likelihood that management will report accurate results. May help build manager confidence. Question 44 (2 points) Which of the following result in an unfavorable material price variance due to production decisions? Purchases were made in uneconomical lot sizes Purchases of the wrong grade of materials were made. Global spread of influenza affected suppliers for the raw materials. Rush orders were scheduled when raw material inventory was low. Poorly trained workers could have an unfavorable effect on which of the following variances? Labor Rate Variance and Materials Quantity Variance Labor Rate Variance only Labor Rate Variance and Materials Price Variance Material Quantity Variance only Question 46 (2 points) The company had an unfavorable direct material price variance, but a favorable direct material efficiency variance for one of its expenses. Which of the following is consistent with this outcome? There was a glut of direct materials and the company could purchase the materials at a lower cost. These materials were higher quality and thus there was greater direct material efficiency. There was an increase in demand for direct materials that raised their cost, but these materials were harder to use and the company had decreased efficiency in their use. There was a deflationary trend in the direct materials and the company could purchase the materials at a lower cost. These materials were hard to use and thus there was more waste and lower direct material efficiency. The company had a higher cost for the direct materials, but these materials were easier to use, producing less scrap. Thus, there was greater direct material efficiency. Question 47 (2 points) Maragement has gathered the following information from the Schedule of Cash Collections and the Schedule of Cash Disbursements. What minimum cash balance would you recommend for this company? $80,000 $90,000 $20,000 $100,000 ABC Company is preparing its Cash Budget. The company has $10,000 cash on hand on January 1, 20x5. The company's policy is to maintain a balance of at least $10,000 and to borrow money in increments of $1,000 at the beginning of the month in which deficiencies are anticipated. The company has no borrowings at the beginning of the year and borrows the minimum necessary. The company anticipates the following Cash Receipts and Cash Disbursements in January. Ignoring interest, what is the cash balance at the beginning of February? $10,000 $20,000 $30,000 $0 Question 49 (2 points) Calculate the Accounts Payable balance at the end of Quarter 3 based on the following information. Purchases are paid 20% in the quarter of the purchase and 80% in the quarter following purchase. $640,000$800,000$160,000$180,000 Question 50 (2 points) Zanny Electronics Corporation uses a standard cost system for the production of its water ski radios. The direct labor standard for each radio is 0.9 hours. The standard direct labor cost per hour is $7.20. During the month of August, Zanny's water ski radio production used 6,600 direct labor-hours at a total direct labor cost of $48,708. This resulted in production of 6,900 water ski radios for August. What is Zanny's labor rate variance for August? $2,808U $972F $2,160F $1,188U