A basic idea underlying _________ is that a manager should be held responsible only for those items that the

manager can actually control to a significant extent. a. participative budgeting B. responsibility accounting c. planning and control d. the master budget

An organization’s budget program should not be used: A. to assign blame to managers that do not meet budgetary goals. b. to help evaluate managers c. to allocate resources to the various parts of an organization. d. to motivate employees

Barley Enterprises has budgeted unit sales for the next four months as follows: October 4,800 units November 5,800 units December 6,400 units January 5,200 units. The ending inventory for each month should be equal to 15% of the next month’s sales in units. The inventory on September 30 was below this level and contained only 600 units. The total units to be produced in October are: a. 5,890 b. 5,670 C. 5.070 d. 4,530

Bustillo Inc. is working on its cash budget for March. The budgeted beginning cash balance is $35,000. Budgeted cash receipts total $142,000 and budgeted cash disbursements total $151,000. The desired ending balance is $30,000. To attain its desired ending cash balance for March, the company needs to borrow: A. $4,000 b. $30,000 c. $56,000 d. $0

Cartier Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $5.80 per direct labor-hour. The company’s budgeted fixed manufacturing overhead is $39,930 per month, which includes depreciation of $12,870. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates the 3,300 direct labor-hours will be required in April. The April cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: a. $27,060 b. $19,140 c. $59,070 D. $46,200

Davis Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable factory overhead rate is $1.70 per direct labor0hour; the budgeted fixed factory overhead is $116,00 per month, of which $30,000 is factory depreciation. If the budgeted direct labor time for October is 8,000

893.300 units August 7. The direct labor budget indicates that 5. The company”s budgeted fixed manufacturing overhead is $69.100 Garry Manufacturing Corporation’s most recent production budget indicates the following required production: Required production (units) October 210. 5.800 units October 4. $99. $20.000 Each unit of finished product requires 5 pounds of raw materials.400 Expected disbursements: Direct materials $12.440 per onth. All other fixed manufacturing overhead costs represent . Past experience has shown that the ending inventory for each month should be equal to 15% of the next month’s sales in units.900 units. Inc.000 December 110.40 per direct labor-hour.000 and the company requires a minimum cash balance at the end of the month of $5.050 units.100 d. How much will Francis Manufacturing need to borrow to meet its cash needs for the month? a. The beginning cash balance will be $6. then the total budgeted factory overhead for October is: a. bases its manufacturing overhead budget on budgeted direct labor-hours.000 November 175. $43. 6.000 D. The total number of units produced in July should be: a. $86.300 units Haylock Inc.750 b.570 units d. 1. $129.100 C.hours.365 units C. which includes depreciation of $15.000. 5.500 Selling and administrative expenses $22.680. has budgeted sales in units for the next five months as follows: June 7.600 Francis Manufacturing Company is currently preparing its cash budget for next month and has gathered the following information: Expected cash receipts $39.000. How many pounds of raw material should Garry plan on purchasing for the month of November? A.000 Manufacturing overhead $11.600 b. $9. 1.250 d.500 c.012.000 units July 5. The inventory on May 31 contained 1. None of the above b. The company maintains raw materials inventory equal to 25% of the next month’s expected production needs.500 Harden. 793.006.600 direct labor-hours will be required in August. The variable overhead rate is $5.. The company needs to prepare a production budget for the next five months.100 units September 6.600 c. $14. 5.030 units b.000 Direct labor $9.

$257. Collections from Law Company’s customers are normally 60% in the month of sale.50 per direct labor-hour.000 is salaries and $8. The budgeted direct labor cost per unit of Product WZ would be: a.000 is depreciation.00 MJ’s gross profit rate is 45% of sales dollars. $53.000 B. and plans to have 500 .000 September $600. $314.000.000 and inventory purchases of $100. Those selling and administrative expenses requiring a cash outlay are paid for during the month incurred. and on April 1 was $35. The company plans to sell 1. The balance is uncollectible. 400 d. At the end of each month. and 8% in the second month following sale. The company expects sales in April of $150.00 c. of which $15.000 IP $90. Law Company’s cash balance on March 1 was $43. $14.5 hours of direct labor at the rate of $14.760 C.000 c. the gala Manufacturing Company has 300 units Product XYZ on hand.680 b.current cash flows. $30. The remaining selling and administrative expenses are variable with respect to the amount of the sales in dollars. 600 c.240 Information on the actual sales and inventory purchases of the Law Company for the first quarter follow: January Sales $120. $320. $84.000.000. 30% in the month following sale.200 units of Product XYZ during October. $137. Selling and administrative expenses for the month of April are expected to be $38. $99. What dollar amount of merchandise inventory should MJ plan to purchase in August? A. stated as cost. Law Company takes full advantage of the 3% discount allowed on purchases paid for by the end of the following month. Each unit of Product WZ requires 3. $139.50 MJ Department Store expects to generate the following sales figures for the next three months: Expected sales July $480. $4.000 August $560.000.000 d. The Sugust cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: a. $327. The expected cash collections from customers during April would be: a.000 IP $60.000 IP $78.000 B.000 March $130. MJ wants a merchandise inventory balance equal to 30% of the following month’s sales. $150. Management would like you to prepare a Direct Labor Budget for June.000 LBC corporation makes and sells a product called Product WZ.14 b. $50.75 d. $117.000. $18.600 d.800 On October 1.000 February $100.

380 per month. $30. 420.000 September $50. 2.000 Pitkins Company collects 20% of a month’s sales in the month of sale.320 The following information to Minorca Manufacturing Corporation for next quarter: Expected sales (in units) January 440.000 units c. $24.units of Product XYZ must be produced during October? A.700 b.20 per unit. $0 Schuepfer Inc.000 August $70. The remainder is uncollectable.460 d. The sales budget shows 1. 1.000 . $313.000 units D. Cash collections in April are budgeted to be: a.000.000 D. 1. $321. Budgeted cash receipts total $141. $15.000. $5. To attain its desired ending cash balance for July. Budgeted sales for the next four months are: January $200. 70% in the month following sale.000 Rogers Corporation is preparing its cash budget for July.000 units The LaPann Company has obtained the following sales forecast data: Cash sales July $80. $21.000.000 March 35. 388. The budgeted beginning cash balance is $25.000 October $60.000 c.240 per months. 360. $292. 392. which includes depreciation of $3.000 March $350.500 d.000 b.000 d.400 c.000 February 390. $57.000 Credit sales $240. $3.000 b. and 6% in the second month following sale.000 February $300. bases its selling and administrative expense budget on budgeted unit sales.000 b.860 c. The cash disbursements for selling and administrative expenses on the March selling and administrative expenses budget should be: a. the company should borrow: a.000 April $250. 1.000 February 30.300 units are planned to be sold in March.000 and budgeted cash disbursements total $139.000 Desired ending finished goods inventory (in units) 28. The desired ending cash balance is $30. $320. The remainder of the fixed selling and administrative expense represents current cash flows.000 c.000 March 400. The variable selling and administrative expense is $4.000. The budgeted fixed and administrative expenses is $19.000 units b.000. How many units should Minorca plan on producing for the month of February? a.

000 October $200. ItemB d. budgeted unit sales+ beginning merchandising – desired merchandise inventory. The Cash Budget builds on earlier budgets and schedules as well as additional data d.000 September $180. $148. ItemD Which of the following statements is NOT correct concerning the Cash Budget? A.000 b.beginning merchandise inventory –desired merchandise ending inventory.000. ItemC b.beginning merchandise inventory+ desired merchandise ending inventory b.August $220. and the remainder in the second month following the month of sale. c. ItemA c. d. .000 When preparing a merchandise purchases budget. budgeted unit sales+ beginning merchandise+ desired merchandise ending inventory Which of the following budgets are prepared before the sales budget? Budget Income Statement/ Direct Labor Budget Yes/Yes Yes/No No/Yes NO/NO a. $190. $166.000 D. The Cash Budget should be prepared before the Budgeted Income Statement. budgeted unit sales. the required purchases in units equals: A.000 c. $126. It is not necessary to prepare any other budgets before preparing the Cash Budget b. 70% in the month following the month of sale. The budgeted accounts receivable on September 30 is: a. The Cash Budget should be prepared before the Budgeted Balance Sheet c. budget unit sales. The regular pattern of collection of credit sales is 20% in the month of sale. There are no bad debts.

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