Managerial Accounting Asia Global 2Nd Edition Garrison Test Bank Full Chapter PDF

Managerial Accounting Asia Global 2nd
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LO1: Budget process
LO2: Budget terms and behavior
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LO4a: Sales budget
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LO4b: Production budget
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LO4c: Direct materials budget
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LO4d: Direct labor budget

Chapter 10: Master Budgeting
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LO4e: Manufacturing overhead budget
Copyright © 2015 McGraw-Hill Education. All rights reserved.

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LO4f: Selling & administrative budget

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No reproduction or distribution without the prior written consent of McGraw-Hill Education.

LO4g: Cash budget
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LO4h: Budgeted income statement
LO4i:Budgeted balance sheet
LO5: Service Industry Budgets
LO6: Costs and Benefits of Budgets
Professional Exam Adapted

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LO4g: Cash budget

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LO1: Budget process
LO4a: Sales budget
LO4g: Cash budget

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LO1: Budget process
LO4a: Sales budget
LO4g: Cash budget

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CMA
True / False Questions
1. The cash budget is developed from the budgeted income statement.

True False
2. The usual starting point in budgeting is to make a forecast of cash receipts and cash
disbursements.
True False
3. Budgets are used for planning rather than for control of operations.
True False
4. Self-imposed budgets are those that are prepared by top management and then assigned to
other managers within the organization.
True False
5. One of the distinct advantages of a budget is that it can help to uncover potential
bottlenecks before they occur.
True False
6. A self-imposed budget can be a very effective control device in an organization.

True False
7. A production budget is to a manufacturing firm as a merchandise purchases budget is to a

merchandising firm.
True False
10-6
8. In the merchandise purchases budget, the required purchases (in units) for a period can be
determined by subtracting the beginning merchandise inventory (in units) from the budgeted
sales (in units).
True False
9. When preparing a materials purchase budget, desired ending inventory is deducted from
total needs of the period to arrive at materials to be purchased.
True False
10. In companies that have "no lay-off" policies, the total direct labor cost for a budget period
is computed by multiplying the total direct labor hours needed to make the budgeted output of
completed units by the direct labor wage rate.
True False
11. If the expected level of activity is appreciably above or below the company's present
capacity, it may be desirable to adjust fixed costs in the budget.
True False
12. In the manufacturing overhead budget, the non-cash charges (such as depreciation) are
added to the total budgeted manufacturing overhead to determine the expected cash
disbursements for manufacturing overhead.
True False
13. In the selling and administrative budget, the non-cash charges (such as depreciation) are
deducted from the total budgeted selling and administrative expenses to determine the
expected cash disbursements for selling and administrative expenses.
True False
14. The beginning cash balance is not included on the cash budget because the cash budget
deals exclusively with cash flows rather than with balance sheet amounts.
True False
10-7
Multiple Choice Questions
15. The materials purchase budget:

A. is the beginning point in the budget process.
B. must provide for desired ending inventory as well as for production.
C. is accompanied by a schedule of cash collections.
D. is completed after the cash budget.
16. The budget or schedule that provides necessary input data for the direct labor budget is
the:
A. raw materials purchases budget.
B. production budget.
C. schedule of cash collections.
D. cash budget.
17. Which of the following budgets are prepared before the sales budget?
A. Choice A
B. Choice B
C. Choice C
D. Choice D
18. The master budget process usually begins with the:

A. production budget.
B. operating budget.
C. sales budget.
D. cash budget.
10-8
19. The cash budget must be prepared before you can complete the:
A. production budget.
B. budgeted balance sheet.
C. raw materials purchases budget.
D. schedule of cash disbursements.
20. Which of the following is not a benefit of budgeting?

A. It uncovers potential bottlenecks before they occur.
B. It coordinates the activities of the entire organization by integrating the plans and
objectives of the various parts.
C. It ensures that accounting records comply with generally accepted accounting principles.
D. It provides benchmarks for evaluating subsequent performance.
21. The concept of responsibility accounting means that:

A. Budgetary data should be reviewed and approved by the budget committee.
B. Budgetary data should be reviewed and approved by all levels of management.
C. An employee's performance should be evaluated only on those items under his or her
control.
D. An employee's performance should be evaluated only by his or her immediate supervisor.
22. Fairmont Inc. uses an accounting system that charges costs to the manager who has been
delegated the authority to make decisions concerning the costs. For example, if the sales
manager accepts a rush order that will result in higher than normal manufacturing costs, these
additional costs are charged to the sales manager because the authority to accept or decline the
rush order was given to the sales manager. This type of accounting system is known as:
A. responsibility accounting.
B. contribution accounting.
C. absorption accounting.
D. operational budgeting.
23. A self-imposed budget or ________________ budget is a budget that is prepared with the
full cooperation of managers at all levels.
A. perpetual
B. master
C. participative
D. responsibility
10-9
24. There are various budgets within the master budget. One of these budgets is the
production budget. Which of the following BEST describes the production budget?
A. It details the required direct labor hours.
B. It details the required raw materials purchases.
C. It is calculated based on the sales budget and the desired ending inventory.
D. It summarizes the costs of producing units for the budget period.
25. The excess or deficiency of cash available over disbursements on the cash budget is
calculated as follows:
A. The beginning balance less the expected cash receipts less the expected cash
disbursements.
B. The cash available less the expected cash receipts plus the expected cash disbursements.
C. The beginning balance plus the expected cash receipts less the expected cash
disbursements.
D. None of these.
26. Parlee Company's sales are 30% in cash and 70% on credit. Sixty % of the credit sales are
collected in the month of sale, 25% in the month following sale, and 12% in the second month
following sale. The remainder are uncollectible. The following are budgeted sales data:
Total cash receipts in April would be budgeted to be:

A. $38,900
B. $47,900
C. $27,230
D. $36,230
10-10
27. The PDQ Company makes collections on credit sales according to the following schedule:
25% in month of sale

70% in month following sale
4% in second month following sale
1% uncollectible
The following sales have been budgeted:
Cash collections in June would be:

A. $113,400
B. $110,000
C. $111,000
D. $115,500
28. Tolla Company is estimating the following sales for the first six months of next year:
Sales at Tolla are normally collected as 70% in the month of sale, 25% in the month following
the sale, and the remaining 5% being uncollectible. Also, those customers paying in the month
of sale are given a 2% discount. Based on this information, how much cash should Tolla
expect to collect during the month of April?
A. $281,260
B. $361,260
C. $366,010
D. $393,760
10-11
29. Orion Corporation is preparing a cash budget for the six months beginning January 1.
Shown below are the company's expected collection pattern and the budgeted sales for the
period.
Expected collection pattern:
65% collected in the month of sale
20% collected in the month after sale
10% collected in the second month after sale
4% collected in the third month after sale
1% uncollectible
Budgeted sales:
The estimated total cash collections during April from sales and accounts receivables would
be:
A. $155,900
B. $167,000
C. $171,666
D. $173,400
30. Pardee Company plans to sell 12,000 units during the month of August. If the company
has 2,500 units on hand at the start of the month, and plans to have 2,000 units on hand at the
end of the month, how many units must be produced during the month?
A. 11,500
B. 12,500
C. 12,000
D. 14,000
10-12
31. Modesto Company produces and sells Product AlphaB. To guard against stockouts, the
company requires that 20% of the next month's sales be on hand at the end of each month.
Budgeted sales of Product AlphaB over the next four months are:
Budgeted production for August would be:

A. 62,000 units
B. 70,000 units
C. 58,000 units
D. 50,000 units
32. Friden Company has budgeted sales and production over the next quarter as follows:
The company has 20,000 units of product on hand at April 1. A minimum of 20% of the next
month's sales needs in units must be on hand at the end of each month. July sales are expected
to be 140,000 units. Budgeted sales for June would be (in units):
A. 188,000
B. 160,000
C. 128,000
D. 184,000
33. Fab Manufacturing Corporation manufactures and sells stainless steel coffee mugs.
Expected mug sales at Fab (in units) for the next three months are as follows:
Fab likes to maintain a finished goods inventory equal to 30% of the next month's estimated
sales. How many mugs should Fab plan on producing during the month of November?
A. 23,200 mugs
B. 26,800 mugs
C. 25,900 mugs
D. 34,300 mugs
10-13
34. Superior Industries' sales budget shows quarterly sales for the next year as follows:
Company policy is to have a finished goods inventory at the end of each quarter equal to 20%
of the next quarter's sales. Budgeted production for the second quarter should be:
A. 7,200 units
B. 8,000 units
C. 8,800 units
D. 8,400 units
35. The Waverly Company has budgeted sales for next year as follows:
The ending inventory of finished goods for each quarter should equal 25% of the next
quarter's budgeted sales in units. The finished goods inventory at the start of the year is 3,000
units. Scheduled production for the third quarter should be:
A. 17,500
B. 18,500
C. 22,000
D. 13,500
10-14
36. The Tobler Company has budgeted production for next year as follows:
Four pounds of raw materials are required for each unit produced. Raw materials on hand at
the start of the year total 4,000 pounds. The raw materials inventory at the end of each quarter
should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials
in the third quarter would be:
A. 63,200 pounds
B. 62,400 pounds
C. 56,800 pounds
D. 50,400 pounds
37. Marple Company's budgeted production in units and budgeted raw materials purchases
over the next three months are given below:
Two pounds of raw materials are required to produce one unit of product. The company wants
raw materials on hand at the end of each month equal to 30% of the following month's
production needs. The company is expected to have 36,000 pounds of raw materials on hand
on January 1. Budgeted production for February should be:
A. 105,000 units
B. 82,500 units
C. 150,000 units
D. 75,000 units
10-15
38. Yumm Dairy Corporation manufactures carrot-flavored ice cream. Yumm's production
budget indicated the following units to be produced for the upcoming months:
Four (4) ounces of carrots are needed for each gallon of ice cream. Yumm also likes to have
enough carrots on hand to cover 5% of the next month's production needs for carrots. How
many ounces of carrots should Yumm plan on purchasing during the month of February?
A. 474,000 ounces
B. 486,000 ounces
C. 490,000 ounces
D. 510,000 ounces
39. Brummitt Corporation is working on its direct labor budget for the next two months. Each
unit of output requires 0.05 direct labor-hours. The direct labor rate is $7.50 per direct labor-
hour. The production budget calls for producing 9,100 units in May and 8,800 units in June. If
the direct labor work force is fully adjusted to the total direct labor-hours needed each month,
what would be the total combined direct labor cost for the two months?
A. $3,300.00
B. $3,412.50
C. $6,712.50
D. $3,356.25
40. The following are budgeted data:
Each unit requires 0.75 hours of direct labor at a cost of $6.50 per hour. What is the cost of
direct labor for May?
A. $73,125
B. $82,875
C. $63,375
D. $78,000
10-16
41. Mouw Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The
direct labor budget indicates that 5,400 direct labor-hours will be required in January. The
variable overhead rate is $4.40 per direct labor-hour. The company's budgeted fixed
manufacturing overhead is $77,220 per month, which includes depreciation of $9,720. All
other fixed manufacturing overhead costs represent current cash flows. The January cash
disbursements for manufacturing overhead on the manufacturing overhead budget should be:
A. $67,500
B. $91,260
C. $100,980
D. $23,760
42. Golebiewski Inc. bases its manufacturing overhead budget on budgeted direct labor-hours.
The direct labor budget indicates that 4,900 direct labor-hours will be required in November.
The variable overhead rate is $8.40 per direct labor-hour. The company's budgeted fixed
other fixed manufacturing overhead costs represent current cash flows. The company
recomputes its predetermined overhead rate every month. The predetermined overhead rate
for November should be:
A. $22.30
B. $16.00
C. $24.40
D. $8.40
43. The manufacturing overhead budget at Formica Corporation is based on budgeted direct
labor-hours. The direct labor budget indicates that 4,400 direct labor-hours will be required in
October. The variable overhead rate is $8.90 per direct labor-hour. The company's budgeted
fixed manufacturing overhead is $86,680 per month, which includes depreciation of $16,280.
All other fixed manufacturing overhead costs represent current cash flows. The company
recomputes its predetermined overhead rate every month. The predetermined overhead rate
for October should be:
A. $19.70
B. $24.90
C. $8.90
D. $28.60
10-17
44. The manufacturing overhead budget at Ferrucci Corporation is based on budgeted direct
labor-hours. The direct labor budget indicates that 1,600 direct labor-hours will be required in
December. The variable overhead rate is $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 other fixed manufacturing overhead costs represent current cash flows. The December
cash disbursements for manufacturing overhead on the manufacturing overhead budget should
be:
A. $7,040
B. $19,680
C. $26,720
D. $32,160
45. Roufs Inc. bases its selling and administrative expense budget on budgeted unit sales. The
sales budget shows 7,800 units are planned to be sold in April. The variable selling and
administrative expense is $3.20 per unit. The budgeted fixed selling and administrative
expense is $95,160 per month, which includes depreciation of $9,360 per month. The
remainder of the fixed selling and administrative expense represents current cash flows. The
cash disbursements for selling and administrative expenses on the April selling and
administrative expense budget should be:
A. $85,800
B. $24,960
C. $120,120
D. $110,760
46. The selling and administrative expense budget of Spurlock Corporation is based on
budgeted unit sales, which are 6,300 units for February. The variable selling and
administrative expense is $9.30 per unit. The budgeted fixed selling and administrative
expense is $118,440 per month, which includes depreciation of $19,530 per month. The
remainder of the fixed selling and administrative expense represents current cash flows. The
cash disbursements for selling and administrative expenses on the February selling and
administrative expense budget should be:
A. $98,910
B. $157,500
C. $58,590
D. $177,030
10-18
47. ABC Company has a cash balance of $9,000 on April 1. The company must maintain a
minimum cash balance of $6,000. During April expected cash receipts are $45,000. Expected
cash disbursements during the month total $52,000. During April the company will need to
borrow:
A. $2,000
B. $4,000
C. $6,000
D. $8,000
48. Thiel Inc. is working on its cash budget for October. The budgeted beginning cash balance
is $35,000. Budgeted cash receipts total $166,000 and budgeted cash disbursements total
$162,000. The desired ending cash balance is $50,000. The excess (deficiency) of cash
available over disbursements for October will be:
A. $31,000
B. $39,000
C. $4,000
D. $201,000
49. Guthridge Inc. is working on its cash budget for February. The budgeted beginning cash
balance is $26,000. Budgeted cash receipts total $104,000 and budgeted cash disbursements
total $100,000. The desired ending cash balance is $40,000. To attain its desired ending cash
balance for February, the company needs to borrow:
A. $0
B. $10,000
C. $40,000
D. $70,000
50. The Stacy Company makes and sells a single product, Product R. Budgeted sales for April
are $300,000. Gross Margin is budgeted at 30% of sales dollars. If the net income for April is
budgeted at $40,000, the budgeted selling and administrative expenses are:
A. $133,333
B. $50,000
C. $102,000
D. $78,000
10-19
Noskey Corporation is a merchandising firm. Information pertaining to the company's sales

revenue is presented in the following table.
Management estimates that 5% of credit sales are uncollectible. Of the credit sales that are
collectible, 60% are collected in the month of sale and the remainder in the month following
the sale. Purchases of inventory are equal to next month's cost of goods sold. The cost of
goods sold is 70% of the selling price. All purchases of inventory are on account; 25% are
paid in the month of purchase, and the remainder is paid in the month following the purchase.
51. Noskey Corporation's budgeted cash collections in July from June credit sales are:
A. $144,000
B. $136,800
C. $96,000
D. $91,200
52. Noskey Corporation's budgeted total cash receipts in August are:

A. $240,000
B. $294,000
C. $299,400
D. $239,400
53. Noskey Corporation's budgeted total cash payments in July for inventory purchases are:
A. $405,000
B. $283,500
C. $240,000
D. $168,000
10-20
Justin's Plant Store, a retailer, started operations on January 1. On that date, the only assets
were $16,000 in cash and $3,500 in merchandise inventory. For purposes of budget
preparation, assume that the company's cost of goods sold is 60% of sales. Expected sales for
the first four months appear below.
The company desires that the merchandise inventory on hand at the end of each month be
equal to 50% of the next month's merchandise sales (stated at cost). All purchases of
merchandise inventory must be paid in the month of purchase. Sixty percent of all sales
should be for cash; the balance will be on credit. Seventy-five percent of the credit sales
should be collected in the month following the month of sale, with the balance collected in the
following month. Variable selling and administrative expenses should be 10% of sales and
fixed expenses (all depreciation) should be $3,000 per month. Cash payments for the variable
selling and administrative expenses are made during the month the expenses are incurred.
54. In a budgeted income statement for the month of February, net income would be:
A. $9,000
B. $1,800
C. $0
D. $4,200
55. In a budgeted balance sheet, the Merchandise Inventory on February 28:

A. $4,800
B. $7,500
C. $9,600
D. $3,200
10-21
56. The Accounts Receivable balance that would appear in the March 31 budgeted balance
sheet would be:
A. $15,000
B. $16,000
C. $8,800
D. $12,400
57. In a cash budget for March, the total cash receipts would be:
A. $17,800
B. $8,200
C. $20,200
D. $16,000
58. In a cash budget for March, the total cash disbursements would be:
A. $11,200
B. $13,900
C. $22,300
D. $16,900
10-22
Dilom Farm Supply is located in a small town in the rural west. Data regarding the store's
operations follow:
• Sales are budgeted at $260,000 for November, $230,000 for December, and $210,000 for
January.
• Collections are expected to be 55% in the month of sale, 40% in the month following the
sale, and 5% uncollectible.
• The cost of goods sold is 80% of sales.
• The company purchases 50% of its merchandise in the month prior to the month of sale and
50% in the month of sale. Payment for merchandise is made in the month following the
purchase.
• Other monthly expenses to be paid in cash are $21,700.
• Monthly depreciation is $17,000.
• Ignore taxes.
59. Expected cash collections in December are:

A. $126,500
B. $230,500
C. $104,000
D. $230,000
10-23
60. The cost of December merchandise purchases would be:

A. $176,000
B. $208,000
C. $184,000
D. $84,000
61. December cash disbursements for merchandise purchases would be:

A. $184,000
B. $196,000
C. $176,000
D. $84,000
62. The excess (deficiency) of cash available over disbursements for December would be:
A. $12,800
B. $8,600
C. $17,000
D. $4,200
63. The net income (loss) for December would be:

A. $24,300
B. $12,800
C. ($4,200)
D. $7,300
64. The cash balance at the end of December would be:

A. $40,100
B. $28,000
C. $12,100
D. $40,800
10-24
65. The accounts receivable balance, net of uncollectible accounts, at the end of December
would be:
A. $89,500
B. $92,000
C. $103,500
D. $196,000
66. Accounts payable at the end of December would be:

A. $84,000
B. $92,000
C. $184,000
D. $176,000
67. Retained earnings at the end of December would be:

A. $342,000
B. $362,600
C. $337,800
D. $338,100
10-25
Braston Corporation is a small wholesaler of gourmet food products. Data regarding the
store's operations follow:
• Sales are budgeted at $350,000 for November, $330,000 for December, and $340,000 for
January.
• Collections are expected to be 70% in the month of sale, 26% in the month following the
sale, and 4% uncollectible.
• The cost of goods sold is 70% of sales.
• The company purchases 50% of its merchandise in the month prior to the month of sale and
50% in the month of sale. Payment for merchandise is made in the month following the
purchase.
• Other monthly expenses to be paid in cash are $20,100.
• Monthly depreciation is $22,000.
• Ignore taxes.
68. Expected cash collections in December are:

A. $91,000
B. $330,000
C. $322,000
D. $231,000
10-26
69. The cost of December merchandise purchases would be:

A. $231,000
B. $119,000
C. $245,000
D. $234,500
70. December cash disbursements for merchandise purchases would be:

A. $119,000
B. $234,500
C. $231,000
D. $238,000
71. The excess (deficiency) of cash available over disbursements for December would be:
A. $20,200
B. $107,600
C. $43,700
D. $63,900
10-27
Super Drive is a computer hard drive manufacturer. The company's balance sheet for the
fiscal year ended on November 30 appears below:
Additional information regarding Super Drive's operations appear below:

• Sales are budgeted at $520,000 for December and $500,000 for January.
• Collections are expected to be 60% in the month of sale and 40% in the month following
sale. There are no bad debts.
• 80% of the disk drive components are purchased in the month prior to the month of the sale,
and 20% are purchased in the month of the sale. Purchased components comprise 40% of the
cost of goods sold.
• Payment for components purchased is made in the month following the purchase.
• Assume that the cost of goods sold is 80% of sales.
72. The budgeted cash collections for the upcoming December should be:
A. $208,000
B. $520,000
C. $402,000
D. $462,000
10-28
73. The balance in accounts payable on the budgeted balance sheet for December 31 should
be:
A. $161,280
B. $326,400
C. $165,120
D. $403,200
74. The budgeted gross margin for the month ending December 31 would be:
A. $416,000
B. $104,000
C. $134,000
D. $536,000
10-29
Richards Company has the following budgeted sales for the first half of next year:
The company is in the process of preparing a cash budget and must determine the expected
cash collections by month. To this end, the following information has been assembled:
Collections on credit sales:

60% in month of sale
75. Assume that the accounts receivable balance on January 1 is $70,000. Of this amount,
$60,000 represents uncollected December sales and $10,000 represents uncollected November
sales. Given these data, the total cash collected during January would be:
A. $270,000
B. $420,000
C. $345,000
D. $360,000
76. What is the budgeted accounts receivable balance on May 31?

A. $81,000
B. $68,000
C. $60,000
D. $141,000
10-30
The LaGrange Company had the following budgeted sales for the first half of the current
year:
The company is in the process of preparing a cash budget and must determine the expected
cash collections by month. To this end, the following information has been assembled:
Collections on sales: 60% in month of sale

The accounts receivable balance on January 1 of the current year was $70,000, of which
$50,000 represents uncollected December sales and $20,000 represents uncollected November
sales.
77. The total cash collected during January by LaGrange Company would be:
A. $410,000
B. $254,000
C. $344,000
D. $331,500
78. What is the budgeted accounts receivable balance on June 1 of the current year?
A. $56,000
B. $64,000
C. $76,000
D. $132,000
10-31
Pardise Company plans the following beginning and ending inventory levels (in units) for
July:
Two units of raw material are needed to produce each unit of finished product.
79. If Pardise Company plans to sell 480,000 units during July, the number of units it would
have to manufacture during July would be:
A. 440,000 units
B. 480,000 units
C. 510,000 units
D. 450,000 units
80. If 500,000 finished units were to be manufactured during July, the units of raw material
needed to be purchased would be:
A. 1,000,000 units
B. 1,020,000 units
C. 1,010,000 units
D. 990,000 units
10-32
Sarrazin Corporation is in the process of preparing its annual budget. The following
beginning and ending inventory levels are planned for the year.
Each unit of finished goods requires 8 grams of raw material.
81. If the company plans to sell 640,000 units during the year, the number of units it would
have to manufacture during the year would be:
A. 670,000 units
B. 640,000 units
C. 690,000 units
D. 590,000 units
82. How much of the raw material should the company purchase during the year?
A. 4,720,000 grams
B. 4,700,000 grams
C. 4,730,000 grams
D. 4,740,000 grams
10-33
LDG Corporation makes and sells a product called Product WZ. Each unit of Product WZ
requires 2.0 hours of direct labor at the rate of $10.50 per direct labor-hour. Management
would like you to prepare a Direct Labor Budget for June.
83. The budgeted direct labor cost per unit of Product WZ would be:
A. $12.50
B. $10.50
C. $21.00
D. $5.25
84. The company plans to sell 22,000 units of Product WZ in June. The finished goods
inventories on June 1 and June 30 are budgeted to be 100 and 400 units, respectively.
Budgeted direct labor costs for June would be:
A. $234,150
B. $468,300
C. $462,000
D. $455,700
10-34
Detmer Enterprises has budgeted sales for the next five months as follows:
Past experience has shown that the ending inventory for each month should be equal to 10%
of the next month's sales in units. The inventory on December 31 contained 400 units, which
was in excess of the desired level of inventory. The company needs to prepare a Production
Budget for the first quarter of the year.
85. The total number of units needed (i.e., unit sales plus desired ending inventory) in March
is:
A. 6,120 units
B. 6,080 units
C. 5,400 units
D. 5,940 units
86. The total number of units to be produced in January is:

A. 4,480 units
B. 3,800 units
C. 4,080 units
D. 3,500 units
87. The desired ending inventory for April is:

A. 460 units
B. 540 units
C. 720 units
D. 680 units
10-35
Roberts Enterprises has budgeted sales in units for the next five months as follows:
Past experience has shown that the ending inventory for each month must be equal to 10% of
the next month's sales in units. The inventory on May 31 contained 410 units. The company
needs to prepare a production budget for the second quarter of the year.
88. The beginning inventory in units for September is:

A. 370 units
B. 6,700 units
C. 530 units
D. 670 units
89. The total number of units to be produced in July is:

A. 7,630 units
B. 7,100 units
C. 6,920 units
D. 7,280 units
90. The desired ending inventory for August is:

A. 530 units
B. 670 units
C. 710 units
D. 370 units
10-36
Hardin, Inc, has budgeted sales in units for the next five months as follows:
Past experience has shown that the ending inventory for each month should be equal to 15%
of the next month's sales in units. The inventory on May 31 contained 1,020 units. The
company needs to prepare a production budget for the next five months.
91. The beginning inventory for September should be:

A. 900 units
B. 1,035 units
C. 1,020 units
D. 1,050 units
92. The total number of units produced in July should be:

A. 6,500 units
B. 5,600 units
C. 5,660 units
D. 5,540 units
10-37
Coles Company, Inc. makes and sells a single product, Product R. Three yards of Material K
are needed to make one unit of Product R. Budgeted production of Product R for the next five
months is as follows:
The company wants to maintain monthly ending inventories of Material K equal to 20% of
the following month's production needs. On July 31, this requirement was not met since only
2,500 yards of Material K were on hand. The cost of Material K is $0.85 per yard. The
company wants to prepare a Direct Materials Purchase Budget for the rest of the year.
93. The total cost of Material K to be purchased in August is:

A. $40,970
B. $48,200
C. $33,840
D. $42,300
94. The desired ending inventory of Material K for the month of September is:
A. 7,560 yards
B. 8,400 yards
C. 8,700 yards
D. 9,300 yards
95. The total needs (i.e., production requirements plus desired ending inventory) of Material
K for the month of November are:
A. 37,800 yards
B. 44,940 yards
C. 37,380 yards
D. 45,360 yards
10-38
Castil Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 2.5
kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five
months is as follows:
The company wants to maintain monthly ending inventories of Jurislon equal to 20% of the
following month's production needs. On July 31, this requirement was not met since only
9,700 kilograms of Jurislon were on hand. The cost of Jurislon is $5.00 per kilogram. The
company wants to prepare a Direct Materials Purchase Budget for the next five months.
96. The desired ending inventory of Jurislon for the month of September is:
A. $20,900
B. $52,000
C. $52,250
D. $20,800
97. The total cost of Jurislon to be purchased in August is:

A. $302,250
B. $451,500
C. $250,000
D. $253,750
10-39
Smith Company makes and sells a single product called a Pod. Each Pod requires 1.4 hours
of labor at a labor rate of $9.60 per hour. Smith Company needs to prepare a Direct Labor
Budget for the second quarter of the year.
98. If the budgeted direct labor cost for April is $201,600, then the budgeted production of
Pods for April would be:
A. 21,000 units
B. 29,400 units
C. 18,273 units
D. 15,000 units
99. The budgeted direct labor cost per Pod would be:
A. $13.44
B. $9.60
C. $7.38
D. $11.00
100. In June the company has budgeted to produce 22,000 Pods. The finished goods inventory
on June 1 and June 30 were budgeted at 500 and 800 units, respectively. Budgeted direct
labor costs incurred in June would be:
A. $470,400
B. $295,680
C. $240,000
D. $211,200
10-40
The LFM Company makes and sells a single product, Product T. Each unit of Product T
requires 1.3 hours of direct labor at a rate of $9.10 per direct labor-hour. LFM Company
needs to prepare a Direct Labor Budget for the second quarter of next year.
101. The budgeted direct labor cost per unit of Product T would be:
A. $9.10
B. $11.83
C. $7.00
D. $10.40
102. The company has budgeted to produce 25,000 units of Product T in June. The finished
goods inventories on June 1 and June 30 were budgeted at 500 and 700 units, respectively.
Budgeted direct labor costs for June would be:
A. $293,384
B. $304,031
C. $295,750
D. $227,500
10-41
The Culver Company is preparing its Manufacturing Overhead Budget for the third quarter of
the year. Budgeted variable factory overhead is $3.00 per unit produced; budgeted fixed
factory overhead is $75,000 per month, with $16,000 of this amount being factory
depreciation.
103. If the budgeted production for July is 6,000 units, then the total budgeted factory
overhead for July is:
A. $77,000
B. $82,000
C. $85,000
D. $93,000
104. If the budgeted production for August is 5,000 units, then the total budgeted factory
overhead per unit is:
A. $15
B. $18
C. $20
D. $22
105. If the budgeted cash disbursements for factory overhead for September are $80,000, then
the budgeted production for September must be:
A. 7,400 units
B. 6,200 units
C. 6,500 units
D. 7,000 units
10-42
The Charade Company is preparing its Manufacturing Overhead budget for the fourth quarter
of the year. The budgeted variable factory overhead is $5.00 per direct labor-hour; the
budgeted fixed factory overhead is $75,000 per month, of which $15,000 is factory
depreciation.
106. If the budgeted direct labor time for November is 7,000 hours, then the total budgeted
factory overhead for November is:
A. $95,000
B. $110,000
C. $75,000
D. $125,000
107. If the budgeted cash disbursements for factory overhead for December total $105,000,
then the budgeted direct labor-hours for December must be:
A. 6,000 hours
B. 21,000 hours
C. 9,000 hours
D. 3,000 hours
108. If the budgeted direct labor time for December is 8,000 hours, then total budgeted
factory overhead per direct labor-hour is (rounded):
A. $14.38
B. $9.38
C. $12.50
D. $16.25
10-43
Davie Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of
the year. The budgeted variable factory overhead rate is $6.00 per direct labor-hour; the
budgeted fixed factory overhead is $92,000 per month, of which $16,000 is factory
depreciation.
109. If the budgeted direct labor time for October is 8,000 hours, then the total budgeted
factory overhead for October is:
A. $140,000
B. $76,000
C. $64,000
D. $124,000
110. If the budgeted direct labor time for November is 9,000 hours, then the total budgeted
cash disbursements for November must be:
A. $130,000
B. $146,000
C. $70,000
D. $76,000
111. If the budgeted direct labor time for December is 4,000 hours, then the predetermined
factory overhead per direct labor-hour for December would be:
A. $6.00
B. $29.00
C. $25.00
D. $10.00
10-44
Dano Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The
variable overhead rate is $1.50 per direct labor-hour. The company's budgeted fixed
other fixed manufacturing overhead costs represent current cash flows. The direct labor
budget indicates that 7,600 direct labor-hours will be required in December.
112. The December cash disbursements for manufacturing overhead on the manufacturing
overhead budget should be:
A. $92,720
B. $121,600
C. $81,320
D. $11,400
113. The company recomputes its predetermined overhead rate every month. The
predetermined overhead rate for December should be:
A. $14.50
B. $12.20
C. $16.00
D. $1.50
10-45
Another random document with
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About eight o’clock, the streets began again to be crowded. The
barrooms and public resorts were closed, that the incentive to
precipitate action might not be too readily accessible. Nevertheless
there was much excitement, and among the crowd were many men
from the country, who carried shot and duck guns, and old-fashioned
horse-pistols, such as the “Maryland line” might have carried from
the first to the present war. The best weapons appeared to be in the
hands of young men—boys of eighteen—with the physique, dress and
style of deportment cultivated by the “Dead Rabbits” of New York.
About ten o’clock, a cry was raised that 3,000 Pennsylvania troops
were at the Calvert street depot of the Pennsylvania railroad, and
were about to take up their line of march through the city. It was said
that the 3,000 were at Pikesville, about fifteen miles from the city,
and were going to fight their way around the city. The crowd were
not disposed to interfere with a movement that required a
preliminary tramp of fifteen miles through a heavy sand. But the city
authorities, however, rapidly organized and armed some three or
four companies and sent them towards Pikesville. Ten of the Adams’
Express wagons passed up Baltimore street, loaded with armed men.
In one or two there were a number of mattresses, as if wounded men
were anticipated. A company of cavalry also started for Pikesville to
sustain the infantry that had been expressed. Almost before the last
of the expedition had left the city limits, word was telegraphed to
Marshal Kane by Mayor Brown from Washington, that the
government had ordered the Pennsylvania troops back to
Harrisburgh, from the point they had been expected to move on to
Baltimore. It seemed incredible, but, of course, satisfactory to the
belligerents.
The moment it was known that the government had abandoned
the intention of forcing troops through Baltimore, this intense
commotion settled into comparative calm, but the city was forced to
feel the effect of its own folly. The regular passenger trains north had
been stopped.
Many business men have been utterly ruined by the extraordinary
position into which the city was plunged through the action of the
mob. Capital has been swept away, and commercial advantages
sacrificed, that no time or enterprise can replace. Those engaged in
trade, have no part in these troubles except to suffer. The mob had
them in complete subjection, and a stain has been cast on the city
which no time can efface. Yet the whole of this attack was doubtless
the work of those classes who form the bane and dregs of society, in
every great city; after events have proved that it was the uprising of a
lawless mob, not the expression of a people. But the Mayor of the city
and the Governor of the State were for a few days in which these
revolters triumphed alike powerless. In this strait they notified the
authorities in Washington that troops could not be passed through
that city without bloodshed.
The difficulties and dangers of the 19th of April were speedily
removed by President Lincoln’s determination to march troops
intended for Washington by another route, backed by the
determination and efficiency of the government and by the supplies
which were sent to the aid of loyal men of the city and State, and
thereby Maryland has been saved from anarchy, desolation and ruin.
The work of impious hands was stayed—a star preserved to our
banner, and the right vindicated without unnecessary loss of life! But
nothing save great caution and forbearance almost unparalleled in
civil wars, rescued Baltimore from destruction.
When the news of the disaster to the brave Massachusetts
regiment reached the old Bay State, a feeling of profound sorrow and
deep indignation seized upon the people. Troops gathered to the
rescue in battalions, armed men arose at every point, and every
railroad verging toward Washington became a great military
highway. Not only Massachusetts, but all New England looked upon
the outrage with generous indignation, as if each State had seen its
own sons stricken down. It seemed to be a strife of patriotism which
should get its men first to the field. Directly after the Massachusetts
troops, the first regiment of Rhode Island Volunteers passed through
New York, on their way to the South. Governor Sprague, who had
magnanimously contributed one hundred thousand dollars to the
cause, accompanied these troops, as commander-in-chief of the
Rhode Island forces. His staff consisted of Colonels Frieze, Goddard,
Arnold, and Captain A. W. Chapin, Assistant Adjutant-General. And
this was followed by a continued rush of armed men till all the great
thoroughfares leading to the capital bristled with steel, and
reverberated with the tramp of soldiery.
Governor Andrews sent to Maryland requesting that the martyred
soldiers should be reverently sent back to Massachusetts, that the
State might give them honored burial. This request was complied
with, Governor Hicks responding in a delicate and sympathetic
manner, and not only Massachusetts but a whole nation awarded
them the glory of first dying for a country that will never forget them.
The names of these men were, Sumner H. Needham, of Lawrence;
Addison O. Whitney, of Lowell City Guards; and Luther C. Ladd,
Lowell City Guards.
MILITARY OCCUPATION OF ANNAPOLIS,
Md.
April 21, 1861.
On the 18th of April, the Eighth Massachusetts regiment, under

the command of General Butler, left Boston for Washington. On
arriving at Philadelphia, he ascertained that all communication with
Washington by the ordinary line of travel through Baltimore had
been cut off, and telegraphic operations suspended. He proceeded to
the Susquehanna river, and at Perryville seized the immense ferry-
boat “Maryland,” belonging to the railroad company, and steamed
with his regiment for Annapolis. Through the supposed treachery of
the pilot, the boat was grounded on the bar before that place, and
they were detained over night. The arrival of troops at this point
proved of vital importance. A conspiracy had been formed by a band
of secessionists to seize the old frigate Constitution, which lay
moored at the wharf of the Naval Academy at that place, being in
service as a school for the cadets. Captain Devereux, with his
company, was ordered to take possession of the noble old craft,
which was promptly done, and the vessel towed to a safe distance
from the landing. Governor Hicks, of Maryland, hearing of their
arrival, sent a protest against troops being landed at that place.
On Monday, the 22d, the troops landed at the Naval Academy,
followed by the New York Seventh regiment, which had just arrived
on board the steamer Boston, from Philadelphia, by the help of
which vessel the Maryland was enabled to get off the bar.
In order to insure the ready transportation of troops and
provisions which were to follow him by the same route, General
Butler seized several vessels in the neighborhood, and promptly
entered them into the United States service. Meantime a
Pennsylvania regiment had arrived at Havre de Grace, and,
anticipating the speedy accession of reinforcements from New York
by water, three companies of the Eighth Massachusetts were
detached as an engineer corps to repair the road to the Annapolis
and Elk Ridge Railroad, of which General Butler had taken military
possession.
The Seventy-first New York and other regiments having arrived
during the night of April 23d, early on the following morning the
Seventh regiment, from New York, took up its line of march on the
track to Washington Junction. A member of this regiment, young
O’Brien the poet, pays a merited tribute to the brave men who
preceded them:
On the morning of the 22d we were in sight of Annapolis, off which
the Constitution was lying, and there found the Eighth regiment of
Massachusetts volunteers on board the Maryland. They were
aground, owing, it is supposed, to the treachery of the captain, whom
they put in irons and wanted to hang. I regret to say that they did not
do it. During the greater portion of that forenoon we were occupied
in trying to get the Maryland off the sand-bar on which she was
grounded. From our decks we could see the men in file trying to rock
her, so as to facilitate our tugging. These men were without water
and without food, were well-conducted and uncomplaining, and
behaved in all respects like heroes. They were under the command of
Colonel Butler, and I regret that that gentleman did not care more
for the comforts of men whose subsequent pluck proved that nothing
was too good for them.
On the afternoon of the 22d we landed at the Annapolis dock, after
having spent hours in trying to relieve the Maryland. For the first
time in his life your correspondent was put to work to roll flour-
barrels. He was entrusted with the honorable and onerous duty of
transporting stores from the steamer to the dock. Later still he
descended to the position of mess servant, when, in company with
gentlemen well known in Broadway for immaculate kids, he had the
honor of attending on his company with buckets of cooked meat and
crackers—the only difference between him and Co. and the ordinary
waiter being, that the former were civil.
We were quartered in the buildings belonging to the Naval School
at Annapolis. I had a bunking-place in what is there called a fort,
which is a rickety structure that a lucifer match would set on fire, but
furnished with imposing guns. I suppose it was merely built to
practice the cadets, because as a defence it is worthless. The same
evening boats were sent off from the yard, and towards nightfall the
Massachusetts men landed, fagged, hungry, thirsty, but indomitable.
The two days that we remained at Annapolis were welcome. We
had been without a fair night’s sleep since we left New York, and
even the hard quarters we had there were a luxury compared to the
dirty decks of the Boston. Besides, there were natural attractions.
The grounds are very prettily laid out, and in the course of my
experience I never saw a handsomer or better bred set of young men
than the cadets. Twenty had left the school owing to political
convictions. The remainder are sound Union fellows, eager to prove
their devotion to the flag. After spending a delightful time in the
Navy School, resting and amusing ourselves, our repose was
disturbed at 9 P. M., April 23, by rockets being thrown up in the bay.
The men were scattered all over the grounds; some in bed, others
walking or smoking, all more or less undressed. The rockets being of
a suspicious character, it was conjectured that a Southern fleet was
outside, and our drummer beat the rollcall to arms. From the stroke
of the drum until the time that every man, fully equipped and in
fighting order, was in the ranks, was exactly, by watch, seven
minutes. The alarm, however, proved to be false, the vessels in the
offing proving to be laden with the Seventy-first and other New York
regiments; so that, after an unpremeditated trial of our readiness for
action, we were permitted to retire to our couches, which means,
permit me to say, a blanket on the floor, with a military overcoat over
you, and a nasal concert all around you, that, in noise and number,
outvies Musard’s concerts monstres.
On the morning of the 24th of April we started on what afterwards
proved to be one of the hardest marches on record. The secessionists
of Annapolis and the surrounding districts had threatened to cut us
off in our march, and even went so far as to say that they would
attack our quarters. The dawn saw us up. Knapsacks, with our
blankets and overcoats strapped on them, were piled on the green. A
brief and insufficient breakfast was taken, our canteens filled with
vinegar and water, cartridges distributed to each man, and after
mustering and loading, we started on our first march through a
hostile country.
General Scott has stated, as I have been informed, that the march
that we performed from Annapolis to the Junction is one of the most
remarkable on record. I know that I felt it the most fatiguing, and
some of our officers have told me that it was the most perilous. We
marched the first eight miles under a burning sun, in heavy
marching order, in less than three hours; and it is well known that,
placing all elementary considerations out of the way, marching on a
railroad track is the most harassing. We started at about 8 o’clock, A.
M., and for the first time saw the town of Annapolis, which, without
any disrespect to that place, I may say looked very much as if some
celestial schoolboy, with a box of toys under his arm, had dropped a
few houses and men as he was going home from school, and that the
accidental settlement was called Annapolis. Through the town we
marched, the people unsympathizing, but afraid. They saw the
Seventh for the first time, and for the first time they realized the men
that they had threatened.
The tracks had been torn up between Annapolis and the Junction,
and here it was that the wonderful qualities of the Massachusetts
Eighth regiment came out. The locomotives had been taken to pieces
by the inhabitants, in order to prevent our travel. In steps a
Massachusetts volunteer, looks at the piece-meal engine, takes up a
flange, and says coolly, “I made this engine, and I can put it together
again.” Engineers were wanted when the engine was ready. Nineteen
stepped out of the ranks. The rails were torn up. Practical railroad
makers out of the regiment laid them again, and all this, mind you,
without care or food. These brave boys, I say, were starving while
they were doing this good work. As we marched along the track that
they had laid, they greeted us with ranks of smiling but hungry faces.
One boy told me, with a laugh on his young lips, that he had not
eaten anything for thirty hours. There was not, thank God, a
haversack in our regiment that was not emptied into the hands of
these ill-treated heroes, nor a flask that was not at their disposal.
Our march lay through an arid, sandy, tobacco-growing country.
The sun poured on our heads like hot lava. The Sixth and Second
companies were sent on for skirmishing duty, under the command of
Captains Clarke and Nevers, the latter commanding as senior officer.
A car, on which was placed a howitzer, loaded with grape and
canister, headed the column, manned by the engineer and artillery
corps, commanded by Lieutenant Bunting. This was the rallying
point of the skirmishing party, on which, in case of difficulty, they
could fall back. In the centre of the column came the cars, laden with
medical stores, and bearing our sick and wounded, while the extreme
rear was brought up with a second howitzer, loaded also with grape
and canister. The engineer corps, of course, had to do the forwarding
work. New York dandies, sir—but they built bridges, laid rails, and
headed the regiment through. After marching about eight miles,
during which time several men caved in from exhaustion, and one
young gentleman was sunstruck, and sent back to New York, we
halted, and instantly, with the divine instinct which characterizes the
hungry soldier, proceeded to forage. The worst of it was, there was
no foraging to be done. The only house within reach was inhabited by
a lethargic person, who, like most Southern men, had no idea of
gaining money by labor. We offered him extravagant prices to get us
fresh water, and it was with the utmost reluctance that we could get
him to obtain us a few pailfuls. Over the mantel-piece of his
miserable shanty I saw—a curious coincidence—the portrait of
Colonel Duryea, of our regiment.
After a brief rest of about an hour, we again commenced our
march; a march which lasted until the next morning—a march than
which in history, nothing but those marches in which defeated troops
have fled from the enemy, can equal. Our Colonel, it seems,
determined to march by railroad, in preference to the common road,
inasmuch as he had obtained such secret information as led him to
suppose that we were waited for on the latter route. Events justified
his judgment. There were cavalry troops posted in defiles to cut us
off. They could not have done it, of course, but they could have
harassed us severely. As we went along the railroad we threw out
skirmishing parties from the Second and Sixth companies, to keep
the road clear. I know not if I can describe that night’s march. I have
dim recollections of deep cuts through which we passed, gloomy and
treacherous-looking, with the moon shining full on our muskets,
while the banks were wrapped in shade, and each moment expecting
to see the flash and hear the crack of the rifle of the Southern
guerilla. The tree frogs and lizards made a mournful music as we
passed. The soil on which we travelled was soft and heavy. The
sleepers, lying at intervals across the track, made the march terribly
fatiguing. On all sides dark, lonely pine woods stretched away, and
high over the hooting of owls, or the plaintive petition of the whip-
poor-will, rose the bass commands of “Halt! Forward, march!”—and
when we came to any ticklish spot, the word would run from the
head of the column along the lines, “Holes,” “Bridge—pass it along,”
&c.
As the night wore on, the monotony of the march became
oppressive. Owing to our having to explore every inch of the way, we
did not make more than a mile or a mile and a half an hour. We ran
out of stimulants, and almost out of water. Most of us had not slept
for four nights, and as the night advanced our march was almost a
stagger. This was not so much fatigue as want of excitement. Our
fellows were spoiling for a light, and when a dropping shot was heard
in the distance, it was wonderful to see how the languid legs
straightened, and the column braced itself for action. If we had had
even the smallest kind of a skirmish, the men would have been able
to walk to Washington. As it was, we went sleepily on. I myself fell
asleep, walking in the ranks. Numbers, I find, followed my example;
but never before was there shown such indomitable pluck and
perseverance as the Seventh showed in that march of twenty miles.
The country that we passed through seemed to have been entirely
deserted. The inhabitants, who were going to kill us when they
thought we daren’t come through, now vamosed their respective
ranches, and we saw them not. Houses were empty. The population
retired into the interior, burying their money, and carrying their
families along with them. They, it seems, were under the impression
that we came to ravage and pillage, and they fled, as the Gauls must
have fled, when Attila and his Huns came down on them from the
North. As we did at Annapolis, we did in Maryland State. We left an
impression that cannot be forgotten. Everything was paid for. No
discourtesy was offered to any inhabitant, and the sobriety of the
regiment should be an example to others. Nothing could have been
more effective or energetic than the movements of the Engineer
Corps, to whom we were indebted for the rebuilding of a bridge in an
incredibly short space of time.
The secret of this forced march, as well as our unexpected descent
on Annapolis, was the result of Colonel Lefferts’ judgment, which has
since been sustained by events. Finding that the line along the
Potomac was closed, and the route to Washington, by Baltimore,
equally impracticable, he came to the conclusion that Annapolis,
commanding, as it did, the route to the Capital, must of necessity be
made the basis of military operations. It was important to the
government to have a free channel through which to transport
troops, and this post presented the readiest means. The fact that
since then all the Northern troops have passed through the line that
we thus opened, is a sufficient comment on the admirable judgment
that decided on the movement. It secured the integrity of the
regiment, and saved lives, the loss of which would have plunged New
York into mourning. Too much importance cannot be attached to
this strategy. To it the Seventh regiment is indebted for being here at
present, intact and sound.
On Thursday, April 24, this regiment reached Washington, having
taken the cars at the junction. They were followed directly by their
noble comrades of the march, the Massachusetts Eighth, and
immediately moved into quarters.
While the troops under Butler and Lefferts were lying at
Annapolis, great anxiety was felt regarding them at Washington. The
lamented Lander was then at the capital, pleading for the privilege of
raising a regiment for the defence of the government, but, for some
inexplicable cause, General Scott had not yet accepted his services.
With Baltimore in open revolt, and Annapolis doubtful in its loyalty,
this anxiety about the troops become so urgent, that Lander was sent
forward to Annapolis, with general directions to aid the troops with
all his ability, and to direct Colonel Butler not to land his men until
the kindly feeling of the citizens of Annapolis was ascertained.
Lander started on the mission, as he undertook everything, with
heart and soul. He rode from Washington to Annapolis on
horseback, without stopping for darkness, or any other cause save
the necessary care of his horse, and reached Annapolis an hour after
the troops had landed. Bringing his experience, as a frontiersman,
who had seen hard service against hostile Indians on the plains, to
bear on the position, Lander gave Colonel Butler such aid and advice
as assisted greatly in bringing the soldiers forward with less danger
and suffering than might otherwise have arisen during their march to
the junction.
MARYLAND.
The attack by an armed mob upon the Massachusetts regiment

had called the attention of the entire country to the State of
Maryland, and her future course was the subject of deep feeling.
Indirectly, Washington was, of course, menaced by her movements,
and it became a matter of vital importance that she should be
retained in the Union and restored to her fidelity. Not here alone
were keen eyes watching her future. England and France, in their
eager thirst for dominion and their jealousy of America and her
liberal institutions, scrutinized every action, with reference to their
own future course. Second only to Washington, therefore, for the
time, became the “Monumental City.”
From the 19th of April, the day when the banner of the
Massachusetts Sixth was baptized in blood, until the 14th of June, all
was suspense, and those who still retained their fealty were reluctant
to express their loyalty from fear of personal violence. Then an
election was held for members of Congress, and every district, save
one, returned decisive majorities for unconditional Union men. The
majority of the Legislature were unreserved in their expressions of
disunion, and were secretly, if not openly, urging on the State to
revolt. As early as December, 1860, Governor Hicks had been
solicited to call a Convention for that purpose, and emissaries of the
rebel government had labored with untiring zeal to spread secession
sentiments among the people. The Governor, knowing the heart of
the masses to be true, refused, and his decision came like a thunder-
clap upon the Southern partizans who hoped to find him a pliant tool
in their hands.
The proclamation of the President, of the 15th April, was tortured
into a means of exciting popular clamor, and every effort was made
to fan the fires of secession, until they should burst forth in fierce
flame. Meetings were held for that purpose, and every possible
means resorted to for its accomplishment. While very many of the
wealthy and commercial classes of Maryland, and particularly of
Baltimore, were in favor of disunion, eminent and influential
citizens, some of whom were among the most distinguished public
men of the State, and whose names are inseparably connected with
its civil and political history, were committed irrevocably to the
support of the government. In this cause the industrial classes—the
working-men and the farmers—were true to the principles they had
always professed. Whatever political parties they had sympathized
with, it had been ever on the broad basis of the Union and the
Constitution.
An illustration of this was given on the 18th of April, the day
previous to the attack on the Massachusetts regiment. A party of
secessionists had raised a rebel flag in the suburbs of Baltimore, and
had a cannon with which they saluted it, but a vast crowd of working-
men from the neighboring foundries assembled, tore down the flag,
and threw the cannon into the river. His Excellency, Thomas H.
Hicks, Governor; John P. Kennedy, Secretary of State under
President Fillmore; Reverdy Johnson, John R. Kenley, ex-Governor
Francis Thomas, Hon. Henry Winter Davis, Edwin H. Webster,
Alexander Evans, and many others boldly stepped forward, and
planted themselves in the foreground, to resist the tide of dishonesty,
passion, and frenzy, into which the State was plunged by the
conspirators. Five thousand citizens of Baltimore addressed a letter
to Governor Hicks, on January 2d, approving his course in refusing
to call the Legislature together to authorize a Convention, and public
meetings were held throughout the State for the same purpose.
Notwithstanding this great demonstration of popular opinion, the
secessionists were resolved upon making the attempt; and, though
foiled in their measures, seized the opportunity afforded by the
passage of Northern troops through Baltimore, to enkindle the
flames of civil war, hoping, in the confusion, to urge their schemes to
a fulfilment.
The pressure upon the Governor after this event became almost
insupportable. All the combined influences of political, social and
commercial classes were brought to bear upon him, and the wild
denunciations and contemptuous and bitter invective and threats
hurled incessantly upon Baltimore and Maryland by a large portion
of the northern press were persistently used to press the Executive to
the commission of the fatal act. Thus urged on all sides, he was
compelled, in deference to the sudden and violent appeals of the
people, to request the government to send no more troops through
Maryland. The proclamation of the President of the 15th of April, and
the call for troops, was represented by the secessionists of Maryland,
as in other States, as an attempt to “coerce,” “invade” and
“subjugate” the Southern States. They used this appeal with great
effect on the popular mind, and the passions of the people were so
inflammable, that many whose convictions were utterly opposed to
the disunion measures were determined to resent this attempt to
“subdue” them. On the 17th of April an excited disunion meeting had
been held in Baltimore, and great efforts were made to commit the
citizens to the secession movement. On the following day Governor
Hicks and his Honor George Wm. Brown, Mayor of Baltimore, issued
proclamations calling upon all citizens to keep the peace. The
Governor assured the people that no troops should be sent from
Maryland, except to defend the national capital. The arrival of
Massachusetts troops and the fatal occurrences of the 19th, caused
an almost entire cessation of business, and all commerce was
suddenly prostrated.
The secessionists were determined to render it impracticable for
any more troops to reach Washington, and for this purpose
destroyed the bridges and a considerable portion of the tracks of
several railroads both north and south of Baltimore.
The Pennsylvania Northern, Philadelphia, Annapolis Junction,
and Baltimore and Ohio roads suffered extensively; and in
consequence of these lawless proceedings, the greatest difficulty was
apprehended in getting troops to Washington in time to protect the
capital from the threatened attack.
On the 21st the government announced that it took possession of
the Philadelphia and Baltimore railway as a military road. During the
temporary delay and obstruction to the travel, it was almost
impossible for travellers to pass either way. Many were molested in
Baltimore; some were placed in confinement under false charges by
the secessionists, and all were compelled to pay exorbitant prices and
resort to the rudest means of conveyance to pursue their journeys,
when permitted so to do. On the 22d the Mayor and Police Board of
Baltimore laid an embargo on provisions and necessary supplies, as
the interruption to transportation threatened a deficiency of food.
The Governor, under these extraordinary circumstances, called a
special session of the Legislature, which assembled at Frederick, on
the 26th of the month, the capital, Annapolis, being then in
possession of General Butler, who threatened to arrest the whole
body if an ordinance of secession were passed. The secession
members of the Legislature then attempted to procure the
organization of a Board of Safety, which should have discretionary
power during the crisis, but public meetings were immediately
called, which were loud in their denunciations of this covert transfer
of the State to its enemies, and it was abandoned. Resolutions
protesting against the war, and recommending the President to
desist, and resort to arbitration, were adopted, and a committee
appointed to visit the President and induce him to promise that no
more troops should be passed through Maryland. The President
replied that the public necessity must govern him, and that he would
consult the wishes of the people to the utmost extent that the
national welfare would permit.
The Legislature, after the report of the Committee had been
submitted, on May 6, discussed the questions at issue, and on the
10th adopted a preamble and resolution, declaring Maryland
sympathized “with the South in the struggle for their rights, solemnly
protests against this action, and will take no part in it, denouncing
the military occupancy of the State, and transportation of troops, and
imploring the President, in the name of God, to cease this unholy
war.”
The reorganization of the military departments for the war was
progressing with all possible dispatch. The Department of
Washington was assigned to Colonel Joseph K. F. Mansfield, the
Department of Annapolis to Major-General Butler, and that of
Pennsylvania to Major General Robert Patterson.
On the 5th of May, General Butler took possession of the junction
of the Baltimore and Washington and Baltimore and Ohio railroads,
at the Relay House, nine miles south of Baltimore. Four days
afterwards a body of United States troops landed at Locust Point in
that city, and were conveyed by the cars through it without
interruption. The Marshal of the city, John K. Kane, was known to be
deeply implicated in the work of rebellion, and he was arrested and
search was made at the police headquarters for concealed arms and
supplies.
The people of Maryland held views which her disloyal legislators
had misrepresented. On the 14th of May, a meeting was held at East
Baltimore, at which strong Union resolutions were adopted, pledging
“lives, fortunes, and sacred honor,” to its defence, declaring the right
of the government to convey troops through the State, and their own
right and duty to aid them in the work.
General Butler the same day occupied Federal Hill, at Baltimore,
and issued a proclamation which was scattered in immense numbers
among the people, and contributed in a high degree to the
restoration of confidence and harmony among all classes. An
important step was also taken by Governor Hicks, who, on the same
day issued a proclamation calling for the State quota of four
regiments of volunteers for three months, to sustain the government
and to protect the capital. General Butler had seized various military
stores intended for the rebels, and also took possession of arms and
powder belonging to loyal parties, to prevent their being removed by
enemies to the government.
Brigadier-General Butler, having been appointed Major-General,
and placed in command of the military Department of Virginia,
North Carolina and Tennessee, a most important position, was
transferred to Fortress Monroe, and was succeeded by General
Cadwallader on the 20th. Fort McHenry was reinforced, and put into
the most effective condition for immediate service, and the
conspirators of Baltimore were restrained from further disorders by
the apprehension that any attempt at insurrection would be the
signal for a bombardment of the city. After Cadwallader came into
command, several arrests of prominent persons had been made.
Among these was Mr. John Merryman, who applied to Chief-Justice
Taney for a writ of habeas corpus. This was granted; and General
Cadwallader, in answer, said that the prisoner had been arrested on
charge of various acts of treason—of holding a command in a
company having in possession arms belonging to the United States,
and of avowing his purpose of armed hostility to the Government of
the United States. In such cases General Cadwallader said he was
authorized by the President to suspend the habeas corpus act; he
therefore requested Judge Taney to suspend further action until
instructions could be had from the President.
Judge Taney thereupon issued a writ of attachment against
General Cadwallader for contempt of court. The Marshal proceeded
to Fort McHenry to execute the writ, but was refused admission.
Judge Taney urged that the President had no authority to suspend
the act of habeas corpus, or to authorize others to do so. An
elaborate opinion to that effect was prepared by the Judge and has
since been published.
A sufficient number of troops were also at this time stationed in
Baltimore, and the loyal citizens were assured that they would be
protected in all their rights and privileges, at every hazard. Thus
fortified, protected and encouraged, the loyalty of the people was
fully displayed, while the disloyal were held in check. Maryland,
glorious in her past history, and her devotion to the Constitution,
was saved from destruction, and her loyal citizens will in generations
to come receive the plaudits of millions whose gratitude will be deep
enough to overwhelm her few days of revolt.
DESTRUCTION OF THE GOSPORT NAVY
YARD.
April 21, 1861.
The splendid naval and military establishment at Gosport,

Virginia, belonging to the Federal Government, was, at the time
Virginia seceded, in the possession of the United States. It was
supplied with immense quantities of military and naval stores; and
several old vessels which had been withdrawn from service, and
others of great value, were either waiting orders to sail or undergoing
repairs. The entire establishment, whether on land or water, was
indispensable to the conspirators, for the possession of the Navy
Yard would give them immediate control of ordnance stores and
property worth $30,000,000.
The seizure of this vast establishment having been determined
upon, five or six vessels had been sunk by the rebels in the channel of
the Elizabeth river, below the Navy Yard, thus effectually preventing
the passage of larger vessels.
General Taliaferro was placed in command of the insurgent forces
then rapidly concentrating at Norfolk. Commodore McCauley, who
commanded at the Navy Yard, had been reluctant to adopt any
measures which would bring him into hostility with the State troops,
and thus inaugurate the war. The rebels took advantage of this
leniency, but for once they were disappointed in their expectations of
success. The Commodore determined to destroy the immediate
agencies of the war, leaving the armories, ship wood, docks and
dwellings unharmed, hoping that, although they might for a time be
occupied by the insurgents, the stars and stripes would eventually
float over them in triumph.
At 8½ o’clock on Saturday evening, the 20th April, the Pawnee,
containing 600 Massachusetts troops from Fortress Monroe, arrived
at Gosport harbor, the Commodore’s flag at its mast-head the white
sails, relieved by the dark blue sky, appearing more like the floating
wings of the dove of peace than heralds of destruction. The scene
that followed is thus graphically described by an eye-witness.
Her coming was not unexpected, and as she glided to her place at
the dock, the men on the Pennsylvania and the Cumberland, several
hundred in number, greeted her with a volley of cheers that echoed
and re-echoed till all Norfolk and Portsmouth must have heard the
hail. The men of the Pennsylvania fairly outdid themselves in their
enthusiasm on this occasion. They clambered into the shrouds, and
not only answered to the “three cheers,” but volunteered “three times
three,” and gave them with a hurricane of heartiness. This intense
feeling on their part is easily explained. They had been a long time
almost imprisoned on shipboard, on a ship imbedded in the river,
motionless and helpless, and subject to promises from the
secessionists of speedy demolition. In the advent of the Pawnee they
saw deliverance from such durance, and they exulted with
tremendous emphasis.
All Portsmouth and Norfolk were thoroughly aroused by the
arrival of the Pawnee. They did not expect her, and were not
prepared for her. They were seized with trepidation, thinking,
perhaps, she had come, and along with the Cumberland and
Pennsylvania, meant to bombard the towns for having obstructed the
channel, and for having, the night before, rifled the United States
magazine, just below Norfolk, of about 4,000 kegs of powder. Being
utterly defenceless and quite terrified, the secessionists made no
protest against the Pawnee’s presence, nor did they venture too near
the Navy Yard.
The Pawnee made fast to the dock, and Colonel Wardrop marched
out his regiment and stationed them at the several gates of the Navy
Yard to oppose the entrance of any forces from without, in case an
attempt to enter should be made. Having adopted this precaution,
the Commodore set the marines on the Pennsylvania, the
Cumberland, the Pawnee, and in the yard, to work. All the books and
papers, the archives of the establishment, were transferred to the
Pawnee.

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Managerial Accounting Asia Global 2nd

Edition Garrison Test Bank

LO1: Budget process

LO2: Budget terms and behavior

LO3: Budgets in different industries

LO4a: Sales budget

LO4b: Production budget

LO4c: Direct materials budget

LO4d: Direct labor budget

LO4e: Manufacturing overhead budget

Copyright © 2015 McGraw-Hill Education. All rights reserved.

LO4f: Selling & administrative budget

No reproduction or distribution without the prior written consent of McGraw-Hill Education.

LO4h: Budgeted income statement

LO4i:Budgeted balance sheet

LO5: Service Industry Budgets

LO6: Costs and Benefits of Budgets

Professional Exam Adapted

LO1: Budget process

LO2: Budget terms and behavior

LO3: Budgets in different industries

LO4a: Sales budget

LO4b: Production budget

LO4e: Manufacturing overhead budget

Copyright © 2015 McGraw-Hill Education. All rights reserved.

No reproduction or distribution without the prior written consent of McGraw-Hill Education.

LO4h: Budgeted income statement

LO4i:Budgeted balance sheet

LO5: Service Industry Budgets

LO6: Costs and Benefits of Budgets

Professional Exam Adapted

LO4e: Manufacturing overhead budget

LO4f: Selling & administrative budget

LO6: Costs and Benefits of Budgets

LO5: Service Industry Budgets

LO4i:Budgeted balance sheet

Professional Exam Adapted

LO4a: Sales budget

LO4g: Cash budget

LO4e: Manufacturing overhead budget

LO4f: Selling & administrative budget

LO6: Costs and Benefits of Budgets

LO5: Service Industry Budgets

LO4i:Budgeted balance sheet

Professional Exam Adapted

LO4a: Sales budget

LO4g: Cash budget

LO1: Budget process

LO4a: Sales budget

LO4b: Production budget

LO4c: Direct materials budget

LO4d: Direct labor budget

LO4e: Manufacturing overhead budget

Copyright © 2015 McGraw-Hill Education. All rights reserved.

LO4f: Selling & administrative budget

No reproduction or distribution without the prior written consent of McGraw-Hill Education.

LO4h: Budgeted income statement

LO4i:Budgeted balance sheet

LO5: Service Industry Budgets

LO6: Costs and Benefits of Budgets

Professional Exam Adapted

True / False Questions

1. The cash budget is developed from the budgeted income statement.