The or ae bar a Taran Fin the blankto indite whether te Muliple Choice aoone iba bmi "arwer or response by placing the identifying leter in the spaco providod. I. The usal starg point in budgeting ia to . Actual sales in Ward Company sere $30,000- in June, $50,000 in July, and $70,000 in Au gust. Badgeted snles in September are 360,000. Thirty 2. A self-imposed budget is one prepared by percent of a month's sales are collected in tho month upmarag-t .nd imposed on oder mungement ofsale, 50% in the first month-ther sale, 15% in the levels asitis-downwudthroughs. opniza- second moath .fter me, md the remaining % are un- should be )$60,500; b) $62,000; e) $57,000; d 3 Badgets are planning devices ather than control devices Beecher Inc, is planning to purchase inven- 2. counting is thst each manager's performance should be judged by how well he or she manages hose items November, and $40,000 in December. The company pays fr 40% of its prdues in the month of purchase d 60% in the month following purchase. what would be the budgeted cash disbunements for pur- inventory in December?) $40,000;b) ganiration is unable to sell all that it had planned to chascs of 70,000 e) s58,000; 4) $200,000. /3. Aroher Company has budgoted sales of unit sales for the 30,000 units in April, 40,000 units in May, anid. 60,000 units in June. The company has 6,000 units on hand on April 1. If tho company requires an ending inventory -Because of the technical nature of budget- equal to20%of de following month ales, produe it is bat to leave budgeti getirely inte capable tion hing May shoulda) 32,000 units, b) 44,000 6. The roquired production in units for hands of the accounting staft unitr, e) 36,000 units; d) 40,000 units. 8. Practical standards are generally viewed . Referto the data for Archer Company in 3. Each unit roquires 3 pounda of a material than ideal standards for motivating employees. A total of 24,000 pounds of the material were on hand Ideal standards allow for machine break- on April 1, and the hand at the cod ofeach month equal to 25% of the fol- lowing month's production needs. The company plans to produce 32,00 units of finished goods in April. How many pounds of the material should the company plan to purchae in Apri? a) 105,000g b) 19,000;) 7,000, ) 6,000. down time and other normal inefficiencies material price standard, determining ny freight or hindling costs should be excluded. /5. If the beginning cash balance is $15,000, the required ending cash balance is $12,000, cash dis- bursements are $125,000, and cash collections from customers are $90,000, the company must borrow: ) 32,000; b) $20,000, 0)38,000; ) $38,000. Choose the best anwdr or reaponse by placing the identifying letter in the space provided 4 The labot rate variance is determined by multiplying the difference between the actual labor rate and the standard labor rate by ) the standard hous allowed; b) the actoal hours worked, e) the budgeted hours allowed; d) none of these the result may be: a)unfrvocable materials price variance; b)favorable materinls price variance e) n unfavorablo labor efficiency variance; a frvorable labor efficiency varisnoe; e) responses b and c are both correct; 0 responsosand d are both correct B During Jame Bradiey Compeny produced 4,000 units of product The standard cost card indi- cates the following lsbor standards per unit of output 3.5 hours at $6 per hour- $21. During tho month, tho company workod 15,000 hours. The standard hours allowed for the month were: ) 14,000 hours; b) 15,000 hours; e) 24,000 houn; d 18,000 houn. Refer to the data in questionl8 sbove. What is the labor efficiency variance for June? (F indicates Favorablo variance and U indicales an Unfrvorable varianca.) a) $1,000 F; b) $1,000 U;c) $6,000 F; d) $6,000 U. 20 Refor to the data in question above. The total labor cost during June was $88,000 for the 5,000 hours that were worked. What is the labor rate variance for June? ) $6,000 F; b)$6,000 U; o) $2,000 F; d) $2,000 U 2/ During July, Bradley Company produced 3,000 units of product. Tho standard cost card indi- cates the following materials standards per unit of out- put: 2 pounds at $0,50 per pound-$1 8,000 pounds of matorial wore $3,900. The materials price variance for July is: $100 F;b) $100 U; c) 4,100 F:d) $4,100 U. July, at a cost of 22 Refer to the data in question'above. 6,100 pounds of material wero used in July to produoe the output of 3,000 units. The materials quantity varianco for July is: a) $1,550 F; b) S1550 U; c)$50 F; d) s50 U