Happy Company produces
hula hoops. Happy Company has the following sales projections for the upcoming year:
|
First quarter budgeted
hula hoop sales in units
|
24 comma 00024,000
|
|
Second quarter
budgeted hula hoop sales in units
|
60 comma 00060,000
|
|
Third quarter budgeted
hula hoop sales in units
|
25 comma 00025,000
|
|
Fourth quarter
budgeted hula hoop sales in units
|
25 comma 00025,000
|
Happy Company wants to
have
1010%
of the next quarter's
sales in units on hand at the end of each quarter. Inventory at the beginning
of the year was
3 comma 7003,700
hula hoops. How many
hula hoops should Happy Company produce during the first quarter?
A.
20 comma 30020,300
B.
24 comma 00024,000
C.
33 comma 70033,700
D.
26 comma
300
Which one of the
following shows how to calculate 'direct materials to purchase' on
a direct materials budget?
A.
quantity needed for production + desired end
inventory of DM
minus−
beginning inventory of DM.
Your answer is correct.
B.
quantity needed for
production
minus−
desired end inventory of
DM + beginning inventory DM.
C.
units to be produced
minus−
desired end inventory of
DM + beginning inventory of DM.
D.
units to be produced +
desired end inventory of DM
minus−
beginning inventory of DM.
A(n) ________ is a
carefully predetermined cost that is usually expressed on a per unit basis.
A.
allocated cost
B.
flexible cost
C.
applied cost
D.
standard
cost
When preparing
components of the master budget, which of the following alternatives
represents the proper order?
1. Production budget
2. Sales budget
3. Direct materials budget
A.
1, 3, 2
B.
2, 1, 3
Your answer is correct.
C.
2, 3, 1
D.
3, 1, 2
If a worker drops the raw
material during production and that raw material must be discarded, then
which of the following is directly impacted?
A.
Direct materials quantity variance
Your answer is
correct.
B.
Direct labor efficiency
variance
C.
Direct labor rate
variance
D.
Direct materials price variance
Separate sections for
fixed and variable costs are usually shown under which of the following budgets?
A.
Direct materials and
manufacturing overhead budget
B.
Operating expenses budget and manufacturing overhead
budget
Your answer is correct.
C.
Production budget and
manufacturing overhead budget
D.
Manufacturing overhead budget and production
budget
The following
information describes a company's usage of direct labor in a recent period:
|
Actual direct labor
hours used
|
35 comma 00035,000
|
|
Actual rate per hour
|
$ 22.00$22.00
|
|
Standard rate per hour
|
$ 11.00$11.00
|
|
Standard hours for
units produced
|
25 comma 00025,000
|
How much is the direct
labor rate variance?
A.
$ 385 comma 000$385,000
favorable
B.
$ 275 comma 000$275,000
favorable
C.
$ 385 comma 000$385,000
unfavorable
Your answer is correct.
D.
$ 275 comma 000$275,000
unfavorable
Which of the following
is the type of standard that provides allowances for normal amounts of waste
and inefficiency in the production process?
A.
practical standard.
Your answer is correct.
B.
perfection standard.
C.
ideal standard.
D.
realistic standard.
Which of the following
best represents how the Standard Quantity (SQ) of direct materials is computed?
A.
the number of units
actually made times the direct materials price standard.
B.
the Standard Quantity (SQ) of input per unit times
the number of units actually made.
Your answer is correct.
C.
the Standard Quantity (SQ)
of input per unit times the number of units budgeted.
D.
the budgeted quantity of units less the Standard
Quantity (SQ) of units.
An advantage to an
organization that implements a budget is that...
A.
budgets help managers
improve their
decisionminus−making
processes in an
organization.
B.
bdgets help the manager
improve the motivation of employees in the workplace.
C.
budgets help managers
focus their attention on the future needs in an organization.
D.
All of
the above
Which statement best
describes an advantage of zero-based budgeting?
A.
Zerominus−based
budgeting forces managers to justify each dollar in the
budget to ensure that some expenses are lower in a current year compared to
what they were in previous years.
Your answer is correct.
B.
Zerominus−based
budgeting is time consuming.
C.
Zerominus−based
budgeting is labor
intensive.
D.
All of the above are advantages.
Bruner Stores wants to
have
500500
shovels in ending
inventory on December 31. Budgeted sales for December are
2 comma 3002,300
shovels. The November 30
inventory was
350350
shovels. How many
shovels should Benson Stores purchase for December?
A.
2 comma 1502,150
B.
2 comma 4502,450
Your answer is correct.
C.
2 comma 8002,800
D.
3 comma 150
Umpire Industries
reported the following results from its most recent quarter:
|
Actual direct material
used
|
15 comma 90015,900
|
|
Actual direct material
cost per pound
|
$ 5.25$5.25
|
|
Standard direct
material cost per pound
|
$ 7.25$7.25
|
|
Standard direct
material quantity
|
14 comma 80014,800
|
|
Direct material
purchases
|
21 comma 00021,000
|
What is Umpire's
direct material quantity variance?
A.
$ 5 comma 775.00$5,775.00
unfavorable
B.
$ 5 comma 775.00$5,775.00
favorable
C.
$ 7 comma 975.00$7,975.00
unfavorable
Your answer is correct.
D.
$ 7 comma 975.00$7,975.00
favorable
OK Toys Company
manufactures and sells children's skateboards. Each skateboard requires
four bearings. For September, OK Toys Company has budgeted skateboard
sales of
510510
skateboards, while
560560
skateboards are
scheduled to be produced. OK Toys Company will begin September with
220220
bearings in its
beginning inventory, and estimates ending inventory for September to be
420420
bearings. How many
bearings should OK Toys Company purchase in September?
A.
2 comma 4602,460
B.
2 comma 2402,240
C.
290290
D.
2 comma
4402,440
Which of the following
statements explains why managers may intentionally build slack into the budget?
A.
to make their
performance look worse.
B.
to gain the resources they need in the event of budget
cuts.
Your answer is correct.
C.
because they are certain
about the future.
D.
to accomplish all of the above.
Of the following budgets,
which one is stated only in units, not dollars?
A.
manufacturing overhead
B.
direct materials
C.
production
Your answer is correct.
D.
sales
Q
Forty Winks Corporation
manufactures night stands. The production budget shows that Forty Winks
Corporation plans to produce
1 comma 7001,700
night stands in March
and
1 comma 1001,100
night stands in April.
Each night stand requires
0.50.5
direct labor hours in
its production. Forty Winks Corporation has a direct labor rate of
$ 11.00$11.00
per direct labor hour.
What is the total combined direct labor cost that Forty Winks Corporation
should budget in March and April?
A.
15 comma 40015,400
Your answer is correct.
B.
6 comma 0506,050
C.
30 comma 80030,800
D.
AZ Corporation collects 30%
in the second month following sale, 60% in the month following sale and 10%
of a month's sales in the month of sale. Budgeted sales for the upcoming
four months are:
|
April budgeted sales
|
$90,000
|
|
May budgeted sales
|
$140,000
|
|
June budgeted sales
|
$230,000
|
|
July budgeted sales
|
$200,000
|
The amount of cash that
will be collected in July is budgeted to be
A.
$212,000
B.
$20,000
C.
$200,000
Your answer is correct.
D.
$180,000
The following
information describes a company's usage of direct labor in a recent period:
|
Actual direct labor
hours used
|
34 comma 00034,000
|
|
Actual rate per hour
|
$ 23.00$23.00
|
|
Standard rate per hour
|
$ 11.00$11.00
|
|
Standard hours for
units produced
|
28 comma 00028,000
|
How much is the direct
labor efficiency variance?
A.
$ 138 comma 000$138,000
favorable
B.
$ 138 comma 000$138,000
unfavorable
C.
$ 66 comma 000$66,000
favorable
D.
$ 66 comma 000$66,000
unfavorable
Which of the following
is true about a rolling budget?
A.
is executed by upper
management.
B.
is continuously updated, so that the next 12 months
of operations are always budgeted.
Your answer is correct.
C.
begins with zero for
each expense, and then amounts are added in.
D.
extends
5minus−10
years into the future.
Coy Company wants to
have an ending inventory of
9 comma 0009,000
units. Coy Company has
beginning inventory of
14 comma 00014,000
units and expects to
sell
33 comma 00033,000
units. How many units
should Coy Company produce?
A.
28 comma 00028,000
Your answer is correct.
B.
38 comma 00038,000
C.
56 comma 00056,000
D.
42 comma 000
Which of the following
might indicate a favorable direct materials price variance and an unfavorable
direct materials quantity variance?
A.
More expensive,
superior materials requiring less than the standard amount were used in
production.
B.
Less expensive,
inferior materials requiring less than the standard amount were used in
production.
C.
Less expensive, inferior materials requiring more
than the standard amount were used in production.
Your answer is correct.
D.
More expensive, superior materials
requiring more than the standard amount were used in production.
Which of the following
is a possible indication of a favorable direct labor efficiency variance?
A.
higher skilled workers were used that performed the task
faster than expected.
Your answer is correct.
B.
higher skilled workers
were used that performed the task slower than expected.
C.
lower skilled workers
were paid a lower wage than expected.
D.
lower skilled workers were paid a higher wage
than expected.
Weave Inc. gathered the
following actual results for the current month:
|
Actual amounts:
|
|
|
Units produced
|
5,200
|
|
Direct materials
purchased and used (7,300 lbs.)
|
$29,200
|
Budgeted production and
standard costs were:
|
Budgeted production
|
4,800 units
|
|
Direct materials
|
1.5 lbs/unit at $3/lb.
|
What is the direct
materials price variance?
A.
$7,300 favorable
B.
$5,200 unfavorable
C.
$5,200 favorable
D.
$7,300
unfavorable
Karp Company produces
and sells a shelf for
$ 10$10
each. The beginning
inventory is
1 comma 8001,800
shelves, and the
desired ending inventory is
2 comma 2002,200
shelves. If budgeted
production is
10 comma 50010,500
shelves, what is the
forecasted sales revenue from the shelves?
A.
$ 101 comma 000$101,000
Your answer is correct.
B.
$ 105 comma 000$105,000
C.
$ 65 comma 000$65,000
D.
$ 145 comma 000
The purchasing
department of a company negotiates all of the purchasing contracts for raw
materials. In assessing the performance of the purchasing department,
which variance is the most useful?
A.
Direct materials
quantity variance
B.
Direct labor efficiency
variance
C.
Direct labor rate variance
D.
Direct
materials price variance
Twist Enterprises has
collected the following data for one of its products:
|
Direct materials
standard (4 pounds per unit @ $0.41/lb.)
|
$1.64 per finished
good
|
|
Actual direct
materials purchased
|
32,000 pounds
|
|
Actual Direct
Materials Used (AQU)
|
29,000 pounds
|
|
Actual Price (AP)
paid per pound
|
$0.50
|
How much is the direct
materials price variance?
A.
$2,880 favorable
B.
$2,610 unfavorable
C.
$2,610 favorable
D.
$2,880
unfavorable
The Porch Cushion
Company manufactures foam cushions. The number of cushions to be produced in
the upcoming three months follows:
|
Number of foam
cushions to be produced in July
|
13 comma 00013,000
|
|
Number of foam
cushions to be produced in August
|
10 comma 00010,000
|
|
Number of foam
cushions to be produced in September
|
13 comma 00013,000
|
Each cushion requires
22
pounds of the foam used
as stuffing. The company has a policy that the ending inventory of foam each
month must be equal to
1515%
of the following month's
expected production needs. How many pounds of foam does The Porch Cushion
Company need to purchase in August?
A.
23 comma 90023,900
B.
23 comma 00023,000
C.
20 comma 90020,900
Your answer is correct.
D.
17 comma 000
The ________
variance "measures how well the business keeps prices of direct
labor inputs within standards."
A.
direct labor efficiency
B.
direct labor production
volume
C.
direct labor overhead
flexible budget
D.
direct
labor rate
The actual cost of
direct materials is
$ 12.00$12.00
per pound. The standard
cost per pound is
$ 9.00$9.00.
During the current period,
8 comma 1008,100
pounds of direct
materials were used in production and
18 comma 40018,400
pounds were purchased.
The standard quantity of direct materials for actual units produced is
16 comma 80016,800
pounds. How much is the
direct materials quantity variance?
A.
$ 78 comma 300$78,300
favorable
Your answer is correct.
B.
$ 104 comma 400$104,400
favorable
C.
$ 78 comma 300$78,300
unfavorable
D.
$ 104 comma 400$104,400
unfavorable
No comments:
Post a Comment