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Sunday, 12 April 2020

Happy Company produces hula hoops. Happy Company has the following sales projections for the upcoming​ year:



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
decisionminusmaking
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.
Zerominusbased
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.
Zerominusbased
budgeting is time consuming.
C.
Zerominusbased
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
5minus10
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



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Material requisition is a document that supports the requirement of the material. This document is sent to store in charge and approved by:

Material requisition is a   document   that supports the   requirement   of the material. This   document   is sent to store in charge and...