Use the following information for questions 1 - 5

Weissman Corporation manufactures two products: Product E16S and Product P17K. The company currently has a traditional costing system that assigns manufacturing overhead based on direct labor hours. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products E16S and P17K.

Activity Cost Pool	Activity Measure	Total Cost		Total Activity
Machining	Machine-hours	$	220,000	11,000	MHs
Machine setups	Number of setups	$	240,000	400	setups
Product design	Number of products	$	74,000	2	products
Order size	Direct labor-hours	$	270,000	10,000	DHLs

Activity Measure	Product E16S	Product P17K
Machine-hours	7,000	4,000
Number of setups	270	130
Number of products	1	1
Direct labor-hours	3,000	7,000

What is the activity rate used to assign machine setup costs to the products?

$600 per setup

$420 per setup

$525 per setup

$675 per setup

None of the above

The overhead cost charged to Product E16S under the ABC system is:

$530,000

$380,000

$420,000

$350,000

None of the above

The overhead cost charged to Product P17K under the ABC system is:

$530,000

$380,000

$420,000

$384,000

None of the above

The overhead cost charged to Product E16S under the traditional costing system is:

$ 321,500

$ 241,200

$ 298,600

$ 195,300

None of the above.

The predetermined overhead rate used to assign manufacturing overhead costs to products under the traditional costing system is:

A. $ 68.50

B. $ 75.80

C. $ 80.40

D. $ 95.60

E. None of the above

6. Which of the following statements is NOT correct concerning the Cash Budget?

A. It is not necessary to prepare any other budgets before preparing the Cash Budget.

B. The Cash Budget should be prepared before the Budgeted Income Statement.

C. The Cash Budget should be prepared before the Budgeted Balance Sheet.

D. The Cash Budget builds on earlier budgets and schedules as well as additional data.

7. All of Gaylord Corporation's sales are on account. Thirty-five percent of the sales on account are collected in the month of sale, 45% in the month following sale, and the remainder are collected in the second month following sale. The following are budgeted sales data for the company:

	January	February	March	April
Total sales	$50,000	$60,000	$40,000	$30,000

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What is the amount of cash that should be collected in March?

A. $ 24,000

B. $ 37,000

C. $ 41,000

D. $ 51,000

E. None is the answer

8. Parwin Corporation plans to sell 23,000 units during August. If the company has 8,000 units on hand at the start of the month, and plans to have 9,000 units on hand at the end of the month, how many units must be produced during the month?

A. 24,000

B. 22,000

C. 32,000

D. 31,000

E. None of the above.

9. Bentsen Corporation makes one product.

	July	August	September	October
Budgeted unit sales	8,500	9,000	13,900	11,100

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The ending finished goods inventory equals 40% of the following month's sales. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 6 pounds of raw materials. The raw materials cost $2.00 per pound. If 76,680 pounds of raw materials are required for production in September, then the budgeted cost of raw material purchases for August is closest to:

A. $ 133,704

B. $ 131,520

C. $ 160,008

D. $ 146,856

E. None of the above.

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

Budgeted unit sales (all on credit):
July	8,400
August	8,800
September	12,200

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Raw materials requirement per unit of output		4	pounds
Raw materials cost	$	3.00	per pound
Direct labor requirement per unit of output		2.8	direct labor-hours
Direct labor wage rate	$	18.00	per direct labor-hour
Predetermined overhead rate (all variable)	$	11.00	per direct labor-hour

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The ending finished goods inventory should equal 40% of the following month's sales. The budgeted finished goods inventory balance at the end of August is closest to:

A. $ 358,192

B. $ 150,304

C. $ 304,512

D. $ 454,816

E. None of the above.