Use the following to answer questions 1 and 2:

Athens Manufacturing Company has budgeted the following raw material purchases for the last four months of the year:

September.................$850,000

October.....................$900,000

November.................$810,000

December..................$780,000

At Athens, 25% of raw materials purchases are normally paid for in the month of purchase.The remaining 75% is paid for in the month following the purchase.

Question 1

1pts

Athens' total budgeted cash payments for raw materials in November will be:

$862,500

$202,500

$832,500

$877,500

Question 2

1pts

Athens' budgeted balance for accounts payable at December 31 is:

$802,500

$607,500

$780,000

$585,000

Use the following to answer questions 3 and 4:

Rome Company will open a new store on January 1. Based on experience from its other retail outlets, Rome is making the following sales projections:

Cash Sales Credit Sales

January.................. $60,000 $40,000

February................. $30,000 $50,000

March..................... $40,000 $60,000

April....................... $40,000 $80,000

Rome Company estimates that 70% of the credit sales will be collected in the month following the month of sale, and the remaining 30% will be collected in the second month following the month of sale.

Question 3

1pts

Rome's budgeted balance for accounts receivable at March 31 is:

$60,000

$75,000

$95,000

$100,000

Question 4

1pts

Rome's budgeted total cash receipts for April will be:

$57,000

$97,000

$114,000

$74,000

Question 5

1pts

Madrid Inc. has the following budgeted production in units for the next four months:

Month Units Produced

June 90,000

July 120,000

August 210,000

September 150,000

Two pounds of raw materials are required for each unit produced.Ending raw materials inventory should equal 30% of next month's production needs.Raw materials inventory on June 1stwas 54,000 pounds.

Madrid's total required raw material purchases in pounds for July are:

158,000

366,000

294,000

240,000

Question 6

1pts

The direct labor budget indicates that 1,600 direct labor-hours will be required in December.The variable overhead rate is calculated at $4.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $25,120 per month, which includes depreciation of $5,440.All variable and fixed manufacturing overhead costs are paid in the month incurred.The budgeted December cash payments for total manufacturing overhead is:

$26,720

$32,160

$19,680

$7,040

Question 7

1pts

The following are data from the current year budget:

Unit SalesUnits Produced

April12,00015,000

May17,00016,000

June 15,00013,000

Assuming each unit requires 0.75 hours of direct labor at a cost of $6.50 per hour, the budgeted total cost of direct labor for May is:

$78,000

$73,125

$82,875

$63,375

Question 8

1pts

Month Unit Sales

June 90,000

July 120,000

August 210,000

September 150,000

Ending finished goods inventory should equal 20% of next month's budgeted sales.There were 18,000 units of finished goods in inventory on June 1st.

London's required production in units for the month of August is:

240,000

198,000

168,000

210,000

Use the following to answer questions 9 and 10:

Brussels Company establishes its budget for revenues based upon client visits.The budget for the current month was for 2,100 client visits and Brussels budget revenues of $40 per visit.The actual number of client visits for the month was 2,050 and total revenues were $82,960.

Question 9

1pts

Brussels' activity variance for the current month is:

$1,040 Unfavorable

$2,000 Unfavorable

$2,000 Favorable

$960 Favorable

Question 10

1pts

Brussels' revenue variance for the current month is:

$960 Favorable

$2,000 Favorable

$1,040 Unfavorable

$2,000 Unfavorable